10-K
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-K
x
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2015
or
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             

Commission File Number 1-12298 (Regency Centers Corporation)
Commission File Number 0-24763 (Regency Centers, L.P.)

REGENCY CENTERS CORPORATION
REGENCY CENTERS, L.P.
(Exact name of registrant as specified in its charter)
FLORIDA (REGENCY CENTERS CORPORATION)
 
59-3191743
DELAWARE (REGENCY CENTERS, L.P.)
59-3429602
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
 
 
One Independent Drive, Suite 114
Jacksonville, Florida 32202
(904) 598-7000
(Address of principal executive offices) (zip code)
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Regency Centers Corporation
Title of each class
 
Name of each exchange on which registered
Common Stock, $.01 par value
 
New York Stock Exchange
6.625% Series 6 Cumulative Redeemable Preferred Stock, $.01 par value
 
New York Stock Exchange
6.000% Series 7 Cumulative Redeemable Preferred Stock, $.01 par value
 
New York Stock Exchange
 
 
 
 
 
 
Regency Centers, L.P.
Title of each class
 
Name of each exchange on which registered
None
 
N/A
________________________________
Securities registered pursuant to Section 12(g) of the Act:
Regency Centers Corporation: None
Regency Centers, L.P.: Class B Units of Partnership Interest
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Regency Centers Corporation              YES  x    NO  o                     Regency Centers, L.P.              YES  x    NO  o
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act
Regency Centers Corporation              YES  o    NO   x                    Regency Centers, L.P.              YES  o    NO  x
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Regency Centers Corporation              YES  x    NO  o                     Regency Centers, L.P.              YES  x    NO  o



Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Regency Centers Corporation              YES  x    NO  o                     Regency Centers, L.P.              YES  x    NO  o
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
Regency Centers Corporation                  o                    Regency Centers, L.P.                  o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Regency Centers Corporation:
Large accelerated filer
x
 
Accelerated filer
o
Non-accelerated filer
o
 
Smaller reporting company
o
Regency Centers, L.P.:
Large accelerated filer
o
  
Accelerated filer
x
Non-accelerated filer
o
  
Smaller reporting company
o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
Regency Centers Corporation              YES  o    NO   x                    Regency Centers, L.P.              YES  o    NO  x
State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrants' most recently completed second fiscal quarter.
Regency Centers Corporation              $5,455,675,538               Regency Centers, L.P.              N/A
The number of shares outstanding of the Regency Centers Corporation’s voting common stock was 97,606,523 as of February 10, 2016.
Documents Incorporated by Reference
Portions of Regency Centers Corporation's proxy statement in connection with its 2016 Annual Meeting of Stockholders are incorporated by reference in Part III.
 





EXPLANATORY NOTE
This report combines the annual reports on Form 10-K for the year ended December 31, 2015 of Regency Centers Corporation and Regency Centers, L.P. Unless stated otherwise or the context otherwise requires, references to “Regency Centers Corporation” or the “Parent Company” mean Regency Centers Corporation and its controlled subsidiaries; and references to “Regency Centers, L.P.” or the “Operating Partnership” mean Regency Centers, L.P. and its controlled subsidiaries. The term “the Company”, "Regency Centers" or “Regency” means the Parent Company and the Operating Partnership, collectively.
The Parent Company is a real estate investment trust (“REIT”) and the general partner of the Operating Partnership. The Operating Partnership's capital includes general and limited common Partnership Units (“Units”). As of December 31, 2015, the Parent Company owned approximately 99.8% of the Units in the Operating Partnership and the remaining limited Units are owned by investors. The Parent Company owns all of the Series 6 and 7 Preferred Units of the Operating Partnership. As the sole general partner of the Operating Partnership, the Parent Company has exclusive control of the Operating Partnership's day-to-day management.
The Company believes combining the annual reports on Form 10-K of the Parent Company and the Operating Partnership into this single report provides the following benefits:
 
Enhances investors' understanding of the Parent Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;  

Eliminates duplicative disclosure and provides a more streamlined and readable presentation; and  

Creates time and cost efficiencies through the preparation of one combined report instead of two separate reports. 
Management operates the Parent Company and the Operating Partnership as one business. The management of the Parent Company consists of the same individuals as the management of the Operating Partnership. These individuals are officers of the Parent Company and employees of the Operating Partnership.
The Company believes it is important to understand the few differences between the Parent Company and the Operating Partnership in the context of how the Parent Company and the Operating Partnership operate as a consolidated company. The Parent Company is a REIT, whose only material asset is its ownership of partnership interests of the Operating Partnership. As a result, the Parent Company does not conduct business itself, other than acting as the sole general partner of the Operating Partnership, issuing public equity from time to time and guaranteeing certain debt of the Operating Partnership. The Parent Company does not hold any indebtedness, but guarantees all of the unsecured public debt and approximately 21% of the secured debt of the Operating Partnership. The Operating Partnership holds all the assets of the Company and retains the ownership interests in the Company's joint ventures. Except for net proceeds from public equity issuances by the Parent Company, which are contributed to the Operating Partnership in exchange for partnership units, the Operating Partnership generates all remaining capital required by the Company's business. These sources include the Operating Partnership's operations, its direct or indirect incurrence of indebtedness, and the issuance of partnership units.
Stockholders' equity, partners' capital, and noncontrolling interests are the main areas of difference between the consolidated financial statements of the Parent Company and those of the Operating Partnership. The Operating Partnership's capital includes general and limited common Partnership Units, as well as Series 6 and 7 Preferred Units owned by the Parent Company. The limited partners' units in the Operating Partnership owned by third parties are accounted for in partners' capital in the Operating Partnership's financial statements and outside of stockholders' equity in noncontrolling interests in the Parent Company's financial statements. The Series 6 and 7 Preferred Units owned by the Parent Company are eliminated in consolidation in the accompanying consolidated financial statements of the Parent Company and are classified as preferred units of general partner in the accompanying consolidated financial statements of the Operating Partnership.
In order to highlight the differences between the Parent Company and the Operating Partnership, there are sections in this report that separately discuss the Parent Company and the Operating Partnership, including separate financial statements, controls and procedures sections, and separate Exhibit 31 and 32 certifications. In the sections that combine disclosure for the Parent Company and the Operating Partnership, this report refers to actions or holdings as being actions or holdings of the Company. 

As general partner with control of the Operating Partnership, the Parent Company consolidates the Operating Partnership for financial reporting purposes, and the Parent Company does not have assets other than its investment in the Operating Partnership. Therefore, while stockholders' equity and partners' capital differ as discussed above, the assets and liabilities of the Parent Company and the Operating Partnership are the same on their respective financial statements.




TABLE OF CONTENTS
 
Item No.
 
Form 10-K
Report Page
 
 
 
 
PART I
 
 
 
 
1.
 
 
 
1A.
 
 
 
1B.
 
 
 
2.
 
 
 
3.
 
 
 
4.
 
 
 
 
PART II
 
 
 
 
5.
 
 
 
6.
 
 
 
7.
 
 
 
7A.
 
 
 
8.
 
 
 
9.
 
 
 
9A.
 
 
 
9B.
 
 
 
 
PART III
 
 
 
 
10.
 
 
 
11.
 
 
 
12.
 
 
 
13.
 
 
 
14.
 
 
 
 
PART IV
 
 
 
 
15.
 
 
 
 
SIGNATURES
 
 
 
 
16.






Forward-Looking Statements    

In addition to historical information, information in this Form 10-K contains forward-looking statements as defined under federal securities laws. These forward-looking statements include statements about anticipated changes in our revenues, the size of our development and redevelopment program, earnings per share and unit, returns and portfolio value, and expectations about our liquidity. These statements are based on current expectations, estimates and projections about the real estate industry and markets in which the Company operates, and management's beliefs and assumptions. Forward-looking statements are not guarantees of future performance and involve certain known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Known risks and uncertainties are described further in the Item 1A. Risk Factors below. The following discussion should be read in conjunction with the accompanying Consolidated Financial Statements and Notes thereto of Regency Centers Corporation and Regency Centers, L.P. appearing elsewhere herein. We do not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or uncertainties after the date hereof or to reflect the occurrence of uncertain events.

PART I
Item 1.    Business

Regency Centers began its operations as a publicly-traded REIT in 1993, and currently owns direct or partial interests in 318 shopping centers, the majority of which are grocery-anchored community and neighborhood centers. Our centers are located in the top markets of 27 states and the District of Columbia, and contain 38.0 million square feet of gross leasable area ("GLA"). Our pro-rata share of this GLA is 28.4 million square feet. All of our operating, investing, and financing activities are performed through the Operating Partnership, its wholly-owned subsidiaries, and through its co-investment partnerships.
Our mission is to be the best-in-class grocery-anchored shopping center owner and developer through:
First-rate performance of our exceptionally merchandised and located national portfolio;
Value-enhancing services of the best team of professionals in the business; and
Creation of superior growth in shareholder value.

Our strategy is to:
Sustain average annual 3% net operating income (“NOI”) growth from a high-quality, growing portfolio of thriving community and neighborhood shopping centers;
Develop new, and redevelop existing, high quality shopping centers at attractive returns on investment from a disciplined development program;
Cost-effectively enhance our already strong balance sheet to reduce our cost of capital, provide financial flexibility and weather economic downturns; and
Engage a talented and dedicated team that operates efficiently and is recognized as a leader in the real estate industry with respect to development and operating capabilities, customer relationships, operating and technology systems, and environmental sustainability.

We expect to execute our strategy as follows:

Sustain average annual 3% NOI growth from a high-quality, growing portfolio of thriving community and neighborhood shopping centers:
Own and develop centers that are located at key corners in our nation’s most attractive metro areas;
Target trade areas characterized by their strong demographics and consumer buying power, and draw shoppers to our centers with highly productive anchor tenants;
Attract the best national, regional and local retailers and restaurants;
Pursue initiatives that reinforce the underlying quality of our portfolio and maximize long-term growth such as “Fresh Look®,” an operating philosophy that guides our merchandising and place-making programs;
Fortify future NOI growth by rigorously reviewing our portfolio to identify low growth assets for disposition; and
Opportunistically upgrade our portfolio by acquiring high quality shopping centers with meaningful upside in NOI growth funded from the sale of low growth assets.

Develop new, and redevelop existing, high quality shopping centers at attractive returns on investment from a disciplined development program:
Maintain and grow our existing presence in our key markets with in-house expertise and anchor relationships;
Develop shopping centers located in desirable infill markets for long-term ownership;
Anchor developments with dominant, national and regional chains and high volume specialty grocers;
Limit size of program to manage total development exposure and risk;
Create additional value through redevelopment of existing centers to benefit the operating portfolio; and

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Fund development program primarily from the sale of low-growth assets in the existing portfolio.

Cost-effectively enhance an already strong balance sheet to reduce our cost of capital, provide financial flexibility and weather economic downturns:
Prudently access our multiple sources of debt and equity through the capital markets and co-investment partnerships;
Fund development and acquisitions from free cash flow, a disciplined match-funding strategy of selling low growth assets, and accessing favorably priced equity;
Further reduce leverage when appropriate through organic growth in earnings and accessing the capital markets;
Rigorously manage our $800 million line of credit and maintain substantial uncommitted capacity;
Maintain a large pool of unencumbered assets and excellent relationships with mortgage lenders; and
Maintain a well laddered debt maturity profile.

Engage a talented and dedicated team that operates efficiently and is recognized as a leader in the real estate industry with respect to development and operating capabilities, customer relationships, operating and technology systems, and environmental sustainability:
Reflect our values by executing and successfully meeting our commitments to our people and our communities, a tradition we have embraced for over 50 years;
Foster a values-based culture, offering a comprehensive benefits package and an engaging workplace environment;
Uphold unwavering standards of honesty and integrity and build our reputation by maintaining the highest ethical principles;
Offer a challenging, safe and dynamic work environment and support the professional development and personal life of each employee;
Encourage employees to achieve their personal health goals through a robust wellness program focused on education, awareness and prevention; and
Contribute to the betterment of our communities by supporting philanthropic programs with employee contribution matching and paid volunteer time.

    
Environmental Sustainability

We recognize the importance of operating in a sustainable manner and are committed to reducing our environmental impact, including energy and water use, greenhouse gas emissions, and waste.  We are committed to transparency with regard to our sustainability performance, risks and opportunities, and will continue to increase disclosure using industry accepted reporting frameworks.   We believe our commitment to environmental sustainability supports the Company in achieving key strategic objectives, leads to better risk management, enhances our relationships with key stakeholders, and is in the best interest of our shareholders. 

Competition
 
We are among the largest owners of shopping centers in the nation based on revenues, number of properties, gross leasable area ("GLA"), and market capitalization. There are numerous companies and individuals engaged in the ownership, development, acquisition, and operation of shopping centers that compete with us in our targeted markets, including grocery store chains that also anchor some of our shopping centers. This results in competition for attracting anchor tenants, as well as the acquisition of existing shopping centers and new development sites. We believe that our competitive advantages are driven by:
our locations within our market areas;
the design and high quality of our shopping centers;
the strong demographics surrounding our shopping centers;
our relationships with our anchor tenants and our side-shop and out-parcel retailers;
our practice of maintaining and renovating our shopping centers; and
our ability to source and develop new shopping centers.
  
Employees
 
Our corporate headquarters are located at One Independent Drive, Suite 114, Jacksonville, Florida. We presently maintain 18 market offices nationwide, where we conduct management, leasing, construction, and investment activities. We have 371 employees and we believe that our relations with our employees are good.

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 Compliance with Governmental Regulations
 
Under various federal, state and local laws, ordinances and regulations, we may be liable for the cost to remove or remediate certain hazardous or toxic substances at our shopping centers. These laws often impose liability without regard to whether the owner knew of, or was responsible for, the presence of the hazardous or toxic substances. The cost of required remediation and the owner's liability for remediation could exceed the value of the property and/or the aggregate assets of the owner. The presence of such substances, or the failure to properly remediate such substances, may adversely affect our ability to sell or lease the property or borrow using the property as collateral. Although we have a number of properties that could require or are currently undergoing varying levels of environmental remediation, known environmental remediation is not currently expected to have a material financial impact on us due to insurance programs designed to mitigate the cost of remediation, various state-regulated programs that shift the responsibility and cost to the state, and existing accrued liabilities for remediation.
 
Executive Officers
 
Our executive officers are appointed each year by our Board of Directors. Each of our executive officers has been employed by us in the position indicated in the list or notes below for more than five years.

Name
Age
Title
Executive Officer in Position Shown Since
Martin E. Stein, Jr.
63
Chairman and Chief Executive Officer
1993
Lisa Palmer
48
President and Chief Financial Officer
2016 (1)
Dan M. Chandler, III
49
Executive Vice President of Development
2016 (2)
James D. Thompson
60
Executive Vice President of Operations
2016 (3)

(1) Ms. Palmer assumed the responsibilities of President, effective January 1, 2016 in addition to her responsibilities as Chief Financial Officer, which she has held since January 2013. Prior to that, Ms. Palmer served as Senior Vice President of Capital Markets since 2003 and has been with the Company since 1996.
(2) Mr. Chandler assumed the role of Executive Vice President of Development on January 1, 2016 and previously served as our Managing Director - West since 2009 and has been with the Company since 2009.
(3) Mr. Thompson assumed the role of Executive Vice President of Operations on January 1, 2016 and previously served as our Managing Director - East since our initial public offering in 1993. Prior to that time, Mr. Thompson served as Executive Vice President of our predecessor real estate division beginning in 1981.


Company Website Access and SEC Filings

Our website may be accessed at www.regencycenters.com. All of our filings with the Securities and Exchange Commission (“SEC”) can be accessed free of charge through our website promptly after filing; however, in the event that the website is inaccessible, we will provide paper copies of our most recent annual report on Form 10-K, the most recent quarterly report on Form 10-Q, current reports filed or furnished on Form 8-K, and all related amendments, excluding exhibits, free of charge upon request. These filings are also accessible on the SEC's website at www.sec.gov.

General Information

Our registrar and stock transfer agent is Broadridge Corporate Issuer Solutions, Inc. (“Broadridge”), Philadelphia, PA. We offer a dividend reinvestment plan (“DRIP”) that enables our stockholders to reinvest dividends automatically, as well as to make voluntary cash payments toward the purchase of additional shares. For more information, contact Broadridge toll free at (855) 449-0975 or our Shareholder Relations Department at (904) 598-7000.

Our independent registered public accounting firm is KPMG LLP, Jacksonville, Florida. Our legal counsel is Foley & Lardner LLP, Jacksonville, Florida.

Annual Meeting

Our annual meeting will be held at The Ponte Vedra Inn & Club, 200 Ponte Vedra Blvd, Ponte Vedra Beach, Florida, at 8:30 a.m. on Friday, April 29, 2016.

3



Defined Terms
    
The following terms, as defined, are commonly used by management and the investing public to understand and evaluate our operational results:

Net Operating Income ("NOI") is calculated as total property revenues (minimum rent, percentage rents, and recoveries from tenants and other income) less direct property operating expenses (operating and maintenance and real estate taxes) from the properties owned by us, and excludes corporate-level income (including management, transaction, and other fees), for the entirety of the periods presented.

Same Property information is provided for operating properties that were owned and operated for the entirety of both calendar year periods being compared and excludes Non-Same Properties and Properties in Development.

A Non-Same Property is a property acquired, sold, or development property completed during either calendar year period being compared.

Property In Development is a property owned and intended to be developed, including partially operating properties acquired specifically for redevelopment and excluding land held for future development.

Development Completion is a project in development that is deemed complete upon the earliest of: (i) 90% of total estimated net development costs have been incurred and percent leased equals or exceeds 95%, or (ii) percent leased equals or exceeds 90% and the project features at least one year of anchor operations, or (iii) the project features at least two years of anchor operations, or (iv) three years have passed since the start of construction. Once deemed complete, the property is termed an Operating Property.

Same Property NOI includes NOI for Same Properties, but excludes straight-line rental income, net of reserves, above and below market rent amortization, banking charges, and other fees. Same Property NOI is a key measure used by management in evaluating the performance of our properties. The Company also provides disclosure of Same Property NOI excluding termination fees, which excludes both termination fee income and expenses.

Pro-Rata information includes 100% of our consolidated properties plus our ownership interest in our unconsolidated real estate investment partnerships.

NAREIT Funds from Operations ("NAREIT FFO") is a commonly used measure of REIT performance, which the National Association of Real Estate Investment Trusts ("NAREIT") defines as net income, computed in accordance with GAAP, excluding gains and losses from sales of depreciable property, net of tax, excluding operating real estate impairments, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. We compute NAREIT FFO for all periods presented in accordance with NAREIT's definition. Many companies use different depreciable lives and methods, and real estate values historically fluctuate with market conditions. Since NAREIT FFO excludes depreciation and amortization and gains and losses from depreciable property dispositions, and impairments, it provides a performance measure that, when compared year over year, reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, acquisition and development activities, and financing costs. This provides a perspective of our financial performance not immediately apparent from net income determined in accordance with GAAP. Thus, NAREIT FFO is a supplemental non-GAAP financial measure of our operating performance, which does not represent cash generated from operating activities in accordance with GAAP and therefore, should not be considered an alternative for cash flow as a measure of liquidity.

Core FFO is an additional performance measure used by Regency as the computation of NAREIT FFO includes certain non-cash and non-comparable items that affect the Company's period-over-period performance.  Core FFO excludes from NAREIT FFO, but is not limited to: (a) transaction related gains, income or expense; (b) impairments on land; (c) gains or losses from the early extinguishment of debt; and (d) other non-core amounts as they occur.  The Company provides a reconciliation of NAREIT FFO to Core FFO.


4



Item 1A. Risk Factors

Risk Factors Related to Our Industry and Real Estate Investments

A shift in retail shopping from brick and mortar stores to internet sales may have an adverse impact on our revenues and cash flow.

Many retailers operating brick and mortar stores have made Internet sales a vital piece of their business. Although many of the retailers in our shopping centers either provide services or sell groceries, such that their customer base does not have a tendency toward online shopping, the shift to internet sales may adversely impact our retail tenants' sales causing those retailers to adjust the size or number of retail locations in the future. This shift could adversely impact our occupancy and rental rates, which would impact our revenues and cash flows.

Downturns in the retail industry likely will have a direct adverse impact on our revenues and cash flow.

Our properties consist primarily of grocery-anchored shopping centers. Our performance therefore is generally linked to economic conditions in the market for retail space. The market for retail space could be adversely affected by any of the following:

Weakness in the national, regional and local economies, which could adversely impact consumer spending and retail sales and in turn tenant demand for space and lead to increased store closings;
Adverse financial conditions for grocery and retail anchors;
Continued consolidation in the retail sector;
Excess amount of retail space in our markets;
Reduction in the demand by tenants to occupy our shopping centers as a result of reduced consumer demand for certain retail categories;
The growth of super-centers and warehouse club retailers, such as those operated by Wal-Mart and Costco, and their adverse effect on traditional grocery chains;
The impact of changing energy costs on consumers and its consequential effect on retail spending; and
Consequences of any armed conflict involving, or terrorist attack against, the United States.

To the extent that any of these conditions occur, they are likely to impact market rents for retail space, occupancy in the operating portfolios, our ability to sell, acquire or develop properties, and our cash available for distributions to stock and unit holders.

Our revenues and cash flow could be adversely affected if economic or market conditions deteriorate where our properties are geographically concentrated, which may impede our ability to generate sufficient income to pay expenses and maintain our properties.

The economic conditions in markets in which our properties are concentrated greatly influence our financial performance. During the year ended December 31, 2015, our properties in California, Florida, and Texas accounted for 30.4%, 12.1%, and 10.3%, respectively, of our net operating income from Consolidated Properties plus our pro-rata share from Unconsolidated Properties ("pro-rata basis"). Our revenues and cash available to pay expenses, maintain our properties, and for distributions to stock and unit holders could be adversely affected by this geographic concentration if market conditions, such as supply of or demand for retail space, deteriorate in California, Florida, or Texas relative to other geographic areas.

Our success depends on the success and continued presence of our “anchor” tenants.

Anchor tenants (those occupying 10,000 square feet or more) occupy large amounts of square footage, pay a significant portion of the total rents at a property and contribute to the success of other tenants by drawing significant numbers of customers to a property. We derive significant revenues from anchor tenants such as Kroger, Publix, and Albertsons/Safeway, who accounted for 4.7%, 3.7%, and 2.9%, respectively, of our total annualized base rent on a pro-rata basis, for the year ended December 31, 2015. Our net income could be adversely affected by the loss of revenues in the event a significant tenant:

Becomes bankrupt or insolvent;
Experiences a downturn in its business;
Materially defaults on its leases;
Does not renew its leases as they expire; or
Renews at lower rental rates.


5



Some anchors have the right to vacate and prevent re-tenanting by paying rent for the balance of the lease term. Vacated anchor space, including space owned by the anchor, can reduce rental revenues generated by the shopping center because of the loss of the departed anchor tenant's customer drawing power. If a significant tenant vacates a property, co-tenancy clauses in select centers may allow other tenants to modify or terminate their rent or lease obligations. Co-tenancy clauses have several variants: they may allow a tenant to postpone a store opening if certain other tenants fail to open their stores; they may allow a tenant to close its store prior to lease expiration if another tenant closes its store prior to lease expiration; or more commonly, they may allow a tenant to pay reduced levels of rent until a certain number of tenants open their stores within the same shopping center.

A significant percentage of our revenues are derived from smaller shop tenants and our net income could be adversely impacted if our smaller shop tenants are not successful.

A significant percentage of our revenues are derived from smaller shop tenants (those occupying less than 10,000 square feet). Smaller shop tenants may be more vulnerable to negative economic conditions as they have more limited resources than larger tenants. Such tenants continue to face increasing competition from non-store retailers and growing e-commerce. In addition, some of these retailers may seek to reduce their store sizes as they increasingly rely on alternative distribution channels, including internet sales, and adjust their square footage needs accordingly. The types of smaller shop tenants vary from retail shops to service providers. If we are unable to attract the right type or mix of smaller shop tenants into our centers, our net income could be adversely impacted.

We may be unable to collect balances due from tenants in bankruptcy.

Although minimum rent is supported by long-term lease contracts, tenants who file bankruptcy have the legal right to reject any or all of their leases and close related stores. In the event that a tenant with a significant number of leases in our shopping centers files bankruptcy and rejects its leases, we could experience a significant reduction in our revenues and may not be able to collect all pre-petition amounts owed by that party.

Our real estate assets may be subject to impairment charges.

Our long-lived assets, primarily real estate held for investment, are carried at cost unless circumstances indicate that the carrying value of the assets may not be recoverable. We evaluate whether there are any indicators, including property operating performance and general market conditions, that the value of the real estate properties (including any related amortizable intangible assets or liabilities) may not be recoverable. Through the evaluation, we compare the current carrying value of the asset to the estimated undiscounted cash flows that are directly associated with the use and ultimate disposition of the asset. Our estimated cash flows are based on several key assumptions, including rental rates, costs of tenant improvements, leasing commissions, anticipated holding periods, and assumptions regarding the residual value upon disposition, including the exit capitalization rate. These key assumptions are subjective in nature and could differ materially from actual results. Changes in our disposition strategy or changes in the marketplace may alter the holding period of an asset or asset group, which may result in an impairment loss and such loss could be material to the Company's financial condition or operating performance. To the extent that the carrying value of the asset exceeds the estimated undiscounted cash flows, an impairment loss is recognized equal to the excess of carrying value over fair value.

The fair value of real estate assets is subjective and is determined through comparable sales information and other market data if available, or through use of an income approach such as the direct capitalization method or the traditional discounted cash flow approach. Such cash flow projections consider factors, including expected future operating income, trends and prospects, as well as the effects of demand, competition and other factors, and therefore are subject to management judgment. Changes in those factors could impact the determination of fair value. In estimating the fair value of undeveloped land, we generally use market data and comparable sales information.

These subjective assessments have a direct impact on our net income because recording an impairment charge results in an immediate negative adjustment to net income. There can be no assurance that we will not take additional charges in the future related to the impairment of our assets. Any future impairment could have a material adverse effect on our net income in the period in which the charge is taken.

Adverse global market and economic conditions could cause us to recognize impairment charges or otherwise harm our performance.

We are unable to predict the timing, severity, and length of adverse market and economic conditions. Adverse market and economic conditions may impede our ability to generate sufficient operating cash flow to pay expenses, maintain properties, pay distributions to our stock and unit holders, and refinance debt. During adverse periods, there may be significant uncertainty in the valuation of our properties and investments that could result in a substantial decrease in their value. No

6



assurance can be given that we would be able to recover the current carrying amount of all of our properties and investments in the future. Our failure to do so would require us to recognize impairment charges for the period in which we reached that conclusion, which could materially and adversely affect us and the market price of our common stock.

Unsuccessful development activities or a slowdown in development activities could have a direct impact on our revenues, revenue growth, and/or net income.

We actively pursue development opportunities. Development activities require various government and other approvals for entitlements and any delay in such approvals may significantly delay the development process. We may not recover our investment in development projects for which approvals are not received. We incur other risks associated with development activities, including:

The risk that we may be unable to lease developments to full occupancy on a timely basis;
The risk that occupancy rates and rents of a completed project will not be sufficient to make the project profitable;
The risk that development costs of a project may exceed original estimates, possibly making the project unprofitable;
The risk that delays in the development and construction process could increase costs;
The risk that we may abandon development opportunities and lose our investment in such opportunities;
The risk that the size of our development pipeline will strain our capacity to complete the developments within the targeted timelines and at the expected returns on invested capital;
Changes in the level of future development and redevelopment activity could have an adverse impact on operating results by reducing the amount of capitalizable internal costs for development projects; and
The lack of cash flow during the construction period.

If we expand into new markets, we may not be successful, which could adversely affect our financial condition, results of operations and cash flows.

If opportunities arise, we may acquire properties in new markets. Each of the risks applicable to our ability to acquire and integrate successfully and operate properties in our current markets is also applicable in new markets. In addition, we may not possess the same level of familiarity with the dynamics and market conditions of the new markets we may enter, which could adversely affect the results of our expansion into those markets, and we may be unable to achieve our desired return on our investments in new markets. If we are unsuccessful in expanding into new markets, it could adversely affect our financial condition, results of operations and cash flows.

Our acquisition activities may not produce the returns that we expect.

Our investment strategy includes investing in high-quality shopping centers that are leased to market-dominant grocers, category-leading anchors, specialty retailers, or restaurants located in areas with high barriers to entry and above average household incomes and population densities. The acquisition of properties and/or companies entails risks that include, but are not limited to, the following, any of which could adversely affect our results of operations and our ability to meet our obligations:

Properties we acquire may fail to achieve the occupancy or rental rates we project, within the time frames we estimate, which may result in the properties' failure to achieve the returns we projected;
Our pre-acquisition evaluation of the physical condition of each new investment may not detect certain defects or identify necessary repairs until after the property is acquired, which could significantly increase our total acquisition costs or decrease cash flow from the property;
Our investigation of a company, property or building prior to our acquisition, and any representations we may receive from such seller, may fail to reveal various liabilities, which could reduce the cash flow from the acquisition or increase our acquisition costs;
Our estimate of the costs to improve, reposition or redevelop a property may prove to be too low, or the time we estimate to complete the improvement, repositioning or redevelopment may be too short, either of which could result in the property failing to achieve the returns we have projected, either temporarily or for a longer time;
We may not recover our costs from an unsuccessful acquisition;
Our acquisition activities may distract our management and generate significant costs; and
We may not be able to integrate an acquisition into our existing operations successfully.


7



We may experience difficulty or delay in renewing leases or re-leasing space.

We derive most of our revenue from rent received from our tenants. We are subject to the risks that, upon expiration or termination of leases, leases for space in our properties may not be renewed, space may not be re-leased, or the terms of renewal or re-lease, including the cost of required renovations or concessions to tenants, may be less favorable than current lease terms. As a result, our results of operations and our net income could be adversely impacted.

We may be unable to sell properties when appropriate because real estate investments are illiquid.

Real estate investments generally cannot be sold quickly. Our inability to respond promptly to unfavorable changes in the performance of our investments could have an adverse effect on our ability to meet our obligations and make distributions to our stock and unit holders.

A number of properties in our portfolio are subject to ground leases; if we are found to be in breach of a ground lease or are unable to renew a ground lease, we could be materially and adversely affected.

We have properties in our portfolio that are either completely or partially on land subject to ground leases with third parties.  Accordingly, we only own long-term leasehold or similar interest in those properties.  If we are found to be in breach of a ground lease, we could lose our interest in the improvements and the right to operate the property that is subject to the ground lease.  In addition, unless we can purchase a fee interest in the underlying land or extend the terms of these leases before or at their expiration, as to which no assurance can be given, we will lose our interest in the improvements and the right to operate such properties.  The existing lease terms, including renewal options, were taken into consideration when making our investment decisions. The purchase price and subsequent improvements are being depreciated over the shorter of the remaining life of the ground leases or the useful life of the underlying assets. If we were to lose the right to operate a property due to a breach or not exercising renewal options of the ground lease, we would be unable to derive income from such property, which would impair the value of our investments, and materially and adversely affect our financial condition, results of operations and cash flows.

Geographic concentration of our properties makes our business vulnerable to natural disasters and severe weather conditions, which could have an adverse effect on our cash flow and operating results.

A significant portion of our property gross leasable area is located in areas that are susceptible to earthquakes, tropical storms, hurricanes, tornadoes, wildfires, and other natural disasters. As of December 31, 2015, approximately 23.2%, 15.7%, and 10.5% of our property gross leasable area, on a pro-rata basis, was located in California, Florida, and Texas, respectively. Intense weather conditions during the last decade have caused our cost of property insurance to increase significantly. We recognize that the frequency and / or intensity of extreme weather events may continue to increase due to climate change, and as a result, our exposure to these events could increase.  These weather conditions also disrupt our business and the business of our tenants, which could affect the ability of some tenants to pay rent and may reduce the willingness of residents to remain in or move to the affected area. Therefore, as a result of the geographic concentration of our properties, we face risks, including higher costs, such as uninsured property losses and higher insurance premiums, and disruptions to our business and the businesses of our tenants.

An uninsured loss or a loss that exceeds the insurance coverage on our properties could subject us to loss of capital or revenue on those properties.

We carry comprehensive liability, fire, flood, extended coverage, rental loss, and environmental insurance for our properties with policy specifications and insured limits customarily carried for similar properties. We believe that the insurance carried on our properties is adequate and consistent with industry standards. There are, however, some types of losses, such as losses from hurricanes, terrorism, wars or earthquakes, for which the insurance levels carried may not be sufficient to fully cover catastrophic losses impacting multiple properties. In addition, tenants generally are required to indemnify and hold us harmless from liabilities resulting from injury to persons or damage to personal or real property, on or off the premises, due to activities conducted by tenants or their agents on the properties (including without limitation any environmental contamination), and at the tenant's expense, to obtain and keep in full force during the term of the lease, liability and property damage insurance policies. However, our tenants may not properly maintain their insurance policies or have the ability to pay the deductibles associated with such policies. Should a loss occur that is uninsured or in an amount exceeding the combined aggregate limits for the policies noted above, or in the event of a loss that is subject to a substantial deductible under an insurance policy, we could lose all or part of our capital invested in, and anticipated revenue from, such properties, which could have a material adverse effect on our operating results and financial condition, as well as our ability to make distributions to stock and unit holders.



8



Loss of our key personnel could adversely affect our business and operations.

We depend on the efforts of our key executive personnel. Although we have developed a succession plan and believe qualified replacements could be found for our key executives, the loss of their services could adversely affect our business and operations.

We face competition from numerous sources, including other REITs and other real estate owners.

The ownership of shopping centers is highly fragmented. We face competition from other REITs and well capitalized institutional investors, as well as from numerous small owners in the acquisition, ownership, and leasing of shopping centers. We also compete to develop shopping centers with other REITs engaged in development activities as well as with local, regional, and national real estate developers. This competition may:

reduce the number of properties available for acquisition or development;
increase the cost of properties available for acquisition or development;
hinder our ability to attract and retain tenants, leading to increased vacancy rates and/or reduced rents; and
adversely affect our ability to minimize our expenses of operation.

If we cannot successfully compete in our targeted markets, our cash flow, and therefore distributions to stock and unit holders, may be adversely affected.

Costs of environmental remediation could reduce our cash flow available for distribution to stock and unit holders.

Under various federal, state and local laws, an owner or manager of real property may be liable for the costs of removal or remediation of hazardous or toxic substances on the property. These laws often impose liability without regard to whether the owner knew of, or was responsible for, the presence of hazardous or toxic substances. The cost of any required remediation could exceed the value of the property and/or the aggregate assets of the owner or the responsible party. The presence of, or the failure to properly remediate, hazardous or toxic substances may adversely affect our ability to sell or lease a contaminated property or to use the property as collateral for a loan. Any of these developments could reduce cash flow and our ability to make distributions to stock and unit holders.

Compliance with the Americans with Disabilities Act and fire, safety and other regulations may require us to make unintended expenditures.

All of our properties are required to comply with the Americans with Disabilities Act (“ADA”), which generally requires that buildings be made accessible to people with disabilities. Compliance with ADA requirements could require removal of access barriers, and noncompliance could result in imposition of fines by the U.S. government or an award of damages to private litigants, or both. While the tenants to whom we lease properties are obligated by law to comply with the ADA provisions, and typically under tenant leases are obligated to cover costs associated with compliance, if required changes involve greater expenditures than anticipated, or if the changes must be made on a more accelerated basis than anticipated, the ability of these tenants to cover costs could be adversely affected. In addition, we are required to operate the properties in compliance with fire and safety regulations, building codes and other land use regulations, as they may be adopted by governmental entities and become applicable to the properties. We may be required to make substantial capital expenditures to comply with these requirements, and these expenditures could have a material adverse effect on our ability to meet our financial obligations and make distributions to our stock and unit holders.

If we do not maintain the security of tenant-related information, we could incur substantial costs and become subject to litigation.

We receive certain information about our tenants that depends upon secure transmissions of confidential information over public networks, including information permitting cashless payments. A compromise of our security systems that results in information being obtained by unauthorized persons could result in litigation against us or the imposition of penalties and require us to expend significant resources related to our information security systems. Such disruptions could adversely affect our operations, results of operations, financial condition and liquidity.

We rely extensively on computer systems to process transactions and manage our business; cyber security attacks and other disruptions could harm our ability to run our business.

We face risks associated with security breaches, whether through (i) cyber attacks or cyber intrusions, (ii) malware or computer viruses and (iii) people with access or who gain access to our systems, and other significant disruptions of our computer networks and related systems. The risk of a security breach or disruption, particularly through cyber attack or cyber

9



intrusion, has increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased. Our computer networks and related systems are essential to the operation of our business and our ability to perform day-to-day operations. Although we make efforts to maintain the security and integrity of our computer networks and related systems, and we have implemented various measures to manage the risk of a security breach or disruption, there can be no assurance that our security efforts and measures will be effective or that attempted security breaches or disruptions would not be successful or damaging. A security breach or other disruption involving our computer networks and related systems could significantly disrupt the proper functioning of our networks and systems and, as a result, disrupt our operations, which could have a material adverse effect on our liquidity, financial condition and results of operations.

Risk Factors Related to Our Co-investment Partnerships and Acquisition Structure

We do not have voting control over our joint venture investments, so we are unable to ensure that our objectives will be pursued.

We have invested substantial capital as a partner in a number of joint venture investments for the acquisition or development of properties. These investments involve risks not present in a wholly-owned project as we do not have voting control over the ventures, although we do have approval rights over major decisions. The other partner may (i) have interests or goals that are inconsistent with our interests or goals or (ii) otherwise impede our objectives. The other partner also may become insolvent or bankrupt. These factors could limit the return that we receive from such investments or cause our cash flows to be lower than our estimates.

The termination of our co-investment partnerships could adversely affect our cash flow, operating results, and our ability to make distributions to stock and unit holders.

If co-investment partnerships owning a significant number of properties were dissolved for any reason, we would lose the asset and property management fees from these co-investment partnerships, which could adversely affect our operating results and our cash available for distribution to stock and unit holders.

Risk Factors Related to Funding Strategies and Capital Structure

Higher market capitalization rates for our properties could adversely impact our ability to sell properties and fund developments and acquisitions, and could dilute earnings.

As part of our funding strategy, we sell operating properties that no longer meet our investment standards or those with a limited future growth profile. These sales proceeds are used to fund the construction of new developments, redevelopments and acquisitions. An increase in market capitalization rates could cause a reduction in the value of centers identified for sale, which would have an adverse impact on the amount of cash generated. In order to meet the cash requirements of our development program, we may be required to sell more properties than initially planned, which could have a negative impact on our earnings.

We depend on external sources of capital, which may not be available in the future on favorable terms or at all.

To qualify as a REIT, the Parent Company must, among other things, distribute to its stockholders each year at least 90% of its REIT taxable income (excluding any net capital gains). Because of these distribution requirements, we may not be able to fund all future capital needs with income from operations. We therefore will have to rely on third-party sources of capital, which may or may not be available on favorable terms or at all. Our access to third-party sources of capital depends on a number of things, including the market's perception of our growth potential and our current and potential future earnings. Our access to debt depends on our credit rating, the willingness of creditors to lend to us and conditions in the capital markets.  In addition to finding creditors willing to lend to us, we are dependent upon our joint venture partners to contribute their pro rata share of any amount needed to repay or refinance existing debt when lenders reduce the amount of debt our joint ventures are eligible to refinance.

In addition, our existing debt arrangements also impose covenants that limit our flexibility in obtaining other financing, such as a prohibition on negative pledge agreements. Additional equity offerings may result in substantial dilution of stockholders' interests and additional debt financing may substantially increase our degree of leverage.

Without access to external sources of capital, we would be required to pay outstanding debt with our operating cash flows and proceeds from property sales.  Our operating cash flows may not be sufficient to pay our outstanding debt as it comes due and real estate investments generally cannot be sold quickly at a return we believe is appropriate.  If we are required to deleverage our business with operating cash flows and proceeds from property sales, we may be forced to reduce the amount of, or eliminate altogether, our distributions to stock and unit holders or refrain from making investments in our business.

10



Our debt financing may adversely affect our business and financial condition.

Our ability to make scheduled payments or to refinance our indebtedness will depend primarily on our future performance, which to a certain extent is subject to economic, financial, competitive and other factors beyond our control. In addition, we do not expect to generate sufficient funds from operations to make balloon principal payments on our debt when due. If we are unable to refinance our debt on acceptable terms, we may be forced (i) to dispose of properties, which might result in losses, or (ii) to obtain financing at unfavorable terms, either of which could reduce the cash flow available for distributions to stock and unit holders. If we cannot make required mortgage payments, the mortgagee could foreclose on the property securing the mortgage.

Covenants in our debt agreements may restrict our operating activities and adversely affect our financial condition.

Our unsecured notes, unsecured term loan, and unsecured line of credit contain customary covenants, including compliance with financial ratios, such as ratio of total debt to gross asset value and fixed charge coverage ratio. Fixed charge coverage ratio is defined as earnings before interest, taxes, depreciation and amortization ("EBITDA") divided by the sum of interest expense and scheduled mortgage principal paid to our lenders plus dividends paid to our preferred stockholders. Our debt arrangements also restrict our ability to enter into a transaction that would result in a change of control. These covenants may limit our operational flexibility and our acquisition activities. Moreover, if we breach any of the covenants in our debt agreements, and do not cure the breach within the applicable cure period, our lenders could require us to repay the debt immediately, even in the absence of a payment default. Many of our debt arrangements, including our unsecured notes, unsecured term loan, and unsecured line of credit are cross-defaulted, which means that the lenders under those debt arrangements can put us in default and require immediate repayment of their debt if we breach and fail to cure a default under certain of our other material debt obligations. As a result, any default under our debt covenants could have an adverse effect on our financial condition, our results of operations, our ability to meet our obligations, and the market value of our stock.

Increases in interest rates would cause our borrowing costs to rise and negatively impact our results of operations.
    
Although a significant amount of our outstanding debt has fixed interest rates, we do borrow funds at variable interest rates under our credit facilities. Increases in interest rates would increase our interest expense on any variable rate debt to the extent we have not hedged our exposure to changes in interest rates. In addition, increases in interest rates will affect the terms under which we refinance our existing debt as it matures, to the extent we have not hedged our exposure to changes in interest rates. This would reduce our future earnings and cash flows, which could adversely affect our ability to service our debt and meet our other obligations and also could reduce the amount we are able to distribute to our stock and unit holders.

Hedging activity may expose us to risks, including the risks that a counterparty will not perform and that the hedge will
not yield the economic benefits we anticipate, which could adversely affect us.

From time to time, we manage our exposure to interest rate volatility by using interest rate hedging arrangements that
involve risk, such as the risk that counterparties may fail to honor their obligations under these arrangements, and that these
arrangements may not be effective in reducing our exposure to interest rate changes. There can be no assurance that our hedging arrangements will qualify for hedge accounting or that our hedging activities will have the desired beneficial impact on our results of operations. Should we desire to terminate a hedging agreement, there could be significant costs and cash requirements involved to fulfill our obligations under the hedging agreement. Failure to hedge effectively against interest rate changes may adversely affect our results of operations.

We may acquire properties or portfolios of properties through tax-deferred contribution transactions, which could result in stockholder dilution and limit our ability to sell such assets.

We may acquire properties or portfolios of properties through tax deferred contribution transactions in exchange for partnership interests in our operating partnership, which may result in stockholder dilution. This acquisition structure may have the effect of, among other things, reducing the amount of tax depreciation we could deduct over the tax life of the acquired properties, and may require that we agree to protect the contributors’ ability to defer recognition of taxable gain through restrictions on our ability to dispose of the acquired properties and/or the allocation of partnership debt to the contributors to maintain their tax bases. These restrictions could limit our ability to sell an asset at a time, or on terms, that would be favorable absent such restrictions.







11



Risk Factors Related to the Market Price for Our Debt and Equity Securities

Changes in economic and market conditions could adversely affect the market price of our securities.

The market price of our debt and equity securities may fluctuate significantly in response to many factors, many of which are out of our control, including:

Actual or anticipated variations in our operating results;
Changes in our funds from operations or earnings estimates;
Publication of research reports about us or the real estate industry in general and recommendations by financial analysts or actions taken by rating agencies with respect to our securities or those of other REIT's;
The ability of our tenants to pay rent and meet their other obligations to us under current lease terms and our ability to re-lease space as leases expire;
Increases in market interest rates that drive purchasers of our stock to demand a higher dividend yield;
Changes in market valuations of similar companies;
Adverse market reaction to any additional debt we incur in the future;
Any future issuances of equity securities;
Additions or departures of key management personnel;
Strategic actions by us or our competitors, such as acquisitions or restructurings;
Actions by institutional stockholders;
Changes in our dividend payments;
Speculation in the press or investment community; and
General market and economic conditions.

These factors may cause the market price of our securities to decline, regardless of our financial condition, results of operations, business or prospects. It is impossible to ensure that the market price of our securities, including our common stock, will not fall in the future. A decrease in the market price of our common stock could reduce our ability to raise additional equity in the public markets. Selling common stock at a decreased market price would have a dilutive impact on existing stockholders.

We cannot assure you we will continue to pay dividends at historical rates.

Our ability to continue to pay dividends at historical rates or to increase our dividend rate will depend on a number of factors, including, among others, the following:
  
Our financial condition and results of future operations;
The terms of our loan covenants; and
Our ability to acquire, finance, develop or redevelop and lease additional properties at attractive rates.

If we do not maintain or periodically increase the dividend on our common stock, it could have an adverse effect on the market price of our common stock and other securities.

Changes in accounting standards may adversely impact our financial results.

The Financial Accounting Standards Board ("FASB"), in conjunction with the SEC, has several key projects on their agenda that could impact how we currently account for our material transactions, including lease accounting and other convergence projects with the International Accounting Standards Board. At this time, we are unable to predict with certainty which, if any, proposals may be passed or what level of impact any such proposal could have on the presentation of our consolidated financial statements, our results of operations and our financial ratios required by our debt covenants.
 

Risk Factors Related to Federal Income Tax Laws

If the Parent Company fails to qualify as a REIT for federal income tax purposes, it would be subject to federal income tax at regular corporate rates.

We believe that the Parent Company qualifies for taxation as a REIT for federal income tax purposes, and we plan to operate so that we can continue to meet the requirements for taxation as a REIT. If the Parent Company continues to qualify as a REIT, it generally will not be subject to federal income tax on income that we distribute to our stockholders. Many REIT requirements, however, are highly technical and complex. The determination that the Parent Company is a REIT requires an

12



analysis of various factual matters and circumstances, some of which may not be totally within our control and some of which involve questions of interpretation. For example, to qualify as a REIT, at least 95% of our gross income must come from specific passive sources, like rent, that are itemized in the REIT tax laws. There can be no assurance that the Internal Revenue Service (“IRS”) or a court would agree with the positions we have taken in interpreting the REIT requirements. We are also required to distribute to our stockholders at least 90% of our REIT taxable income, excluding capital gains. The fact that we hold many of our assets through co-investment partnerships and their subsidiaries further complicates the application of the REIT requirements. Furthermore, Congress and the IRS might make changes to the tax laws and regulations, and the courts might issue new rulings, that make it more difficult, or impossible, for the Parent Company to remain qualified as a REIT.

Also, unless the IRS granted relief under certain statutory provisions, the Parent Company would remain disqualified as a REIT for four years following the year it first failed to qualify. If the Parent Company failed to qualify as a REIT (currently and/or with respect to any tax years for which the statute of limitations has not expired), we would have to pay significant income taxes, reducing cash available to pay dividends, which would likely have a significant adverse effect on the value of our securities. In addition, we would no longer be required to pay any dividends to stockholders. Although we believe that the Parent Company qualifies as a REIT, we cannot assure you that the Parent Company will continue to qualify or remain qualified as a REIT for tax purposes.

Even if the Parent Company qualifies as a REIT for federal income tax purposes, we are required to pay certain federal, state and local taxes on our income and property. For example, if we have net income from “prohibited transactions,” that income will be subject to a 100% tax. In general, prohibited transactions include sales or other dispositions of property held primarily for sale to customers in the ordinary course of business. The determination as to whether a particular sale is a prohibited transaction depends on the facts and circumstances related to that sale. While we have undertaken a significant number of asset sales in recent years, we do not believe that those sales should be considered prohibited transactions, but there can be no assurance that the IRS would not contend otherwise.

Dividends paid by REITs generally do not qualify for reduced tax rates.

Subject to limited exceptions, dividends paid by REITs (other than distributions designated as capital gain dividends or returns of capital) are not eligible for reduced rates for qualified dividends paid by "C" corporations and are taxable at ordinary income tax rates. The more favorable rates applicable to regular corporate qualified dividends could cause investors who are individuals, trusts and estates to perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations that pay dividends, which could adversely affect the value of the shares of REITs, including the shares of our capital stock.

Foreign stockholders may be subject to U.S. federal income tax on gain recognized on a disposition of our common stock if we do not qualify as a "domestically controlled" REIT.

A foreign person disposing of a U.S. real property interest, including shares of a U.S. corporation whose assets consist principally of U.S. real property interests is generally subject to U.S. federal income tax on any gain recognized on the disposition. This tax does not apply, however, to the disposition of stock in a REIT if the REIT is "domestically controlled." In general, we will be a domestically controlled REIT if at all times during the five-year period ending on the applicable stockholder’s disposition of our stock, less than 50% in value of our stock was held directly or indirectly by non-U.S. persons. If we were to fail to qualify as a domestically controlled REIT, gain recognized by a foreign stockholder on a disposition of our common stock would be subject to U.S. federal income tax unless our common stock was traded on an established securities market and the foreign stockholder did not at any time during a specified testing period directly or indirectly own more than 10% of our outstanding common stock.

Complying with REIT requirements may limit our ability to hedge effectively and may cause us to incur tax liabilities.

The REIT provisions of the Code limit our ability to hedge our liabilities. Generally, income from a hedging transaction we enter into either to manage risk of interest rate changes with respect to borrowings incurred or to be incurred to acquire or carry real estate assets, or to manage the risk of currency fluctuations with respect to any item of income or gain (or any property which generates such income or gain) that constitutes “qualifying income” for purposes of the 75% or 95% gross income tests applicable to REITs, does not constitute “gross income” for purposes of the 75% or 95% gross income tests, provided that we properly identify the hedging transaction pursuant to the applicable sections of the Code and Treasury Regulations. To the extent that we enter into other types of hedging transactions, or fail to make the proper tax identifications, the income from those transactions is likely to be treated as non-qualifying income for purposes of both gross income tests. As a result of these rules, we may need to limit our use of otherwise advantageous hedging techniques or implement those hedges through a taxable REIT subsidiary, or TRS. The use of a TRS could increase the cost of our hedging activities (because our TRS would be subject to tax on income or gain resulting from hedges entered into by it) or expose us to greater risks than we would

13



otherwise want to bear. In addition, net losses in a TRS will generally not provide any tax benefit except for being carried forward for use against future taxable income in the TRS.

Risk Factors Related to Our Ownership Limitations and the Florida Business Corporation Act

Restrictions on the ownership of the Parent Company's capital stock to preserve its REIT status could delay or prevent a change in control.

Ownership of more than 7% by value of our outstanding capital stock is prohibited, with certain exceptions, by the Parent Company's articles of incorporation, for the purpose of maintaining its qualification as a REIT. This 7% limitation may discourage a change in control and may also (i) deter tender offers for our capital stock, which offers may be attractive to our stockholders, or (ii) limit the opportunity for our stockholders to receive a premium for their capital stock that might otherwise exist if an investor attempted to assemble a block in excess of 7% of our outstanding capital stock or to affect a change in control.

The issuance of the Parent Company's capital stock could delay or prevent a change in control.

The Parent Company's articles of incorporation authorize our Board of Directors to issue up to 30,000,000 shares of preferred stock and 10,000,000 shares of special common stock and to establish the preferences and rights of any shares issued. The issuance of preferred stock or special common stock could have the effect of delaying or preventing a change in control. The provisions of the Florida Business Corporation Act regarding affiliated transactions could also deter potential acquisitions by preventing the acquiring party from consummating a merger or other extraordinary corporate transaction without the approval of our disinterested stockholders.

Item 1B. Unresolved Staff Comments

None.


14



Item 2.    Properties

The following table is a list of the shopping centers, summarized by state and in order of largest holdings, presented for Consolidated Properties (excludes properties owned by unconsolidated co-investment partnerships):
 
 
 
December 31, 2015
 
December 31, 2014
Location
 
Number of Properties
 
GLA (in thousands)
 
Percent of Total
GLA
 
Percent Leased
 
Number of Properties
 
GLA (in thousands)
 
Percent of Total
GLA
 
Percent Leased
California
 
42

 
5,619

 
24.1
%
 
95.6
%
 
43

 
5,692

 
24.5
%
 
95.4
%
Florida
 
39

 
4,214

 
18.1
%
 
94.7
%
 
38

 
4,025

 
17.3
%
 
93.8
%
Texas
 
22

 
2,716

 
11.7
%
 
97.6
%
 
21

 
2,689

 
11.5
%
 
96.1
%
Georgia
 
15

 
1,392

 
6.0
%
 
92.9
%
 
15

 
1,390

 
6.0
%
 
93.5
%
Colorado
 
15

 
1,266

 
5.4
%
 
91.3
%
 
15

 
1,266

 
5.5
%
 
90.7
%
Ohio
 
8

 
1,164

 
5.0
%
 
98.6
%
 
9

 
1,307

 
5.6
%
 
98.8
%
North Carolina
 
10

 
895

 
3.8
%
 
95.8
%
 
10

 
895

 
3.9
%
 
94.9
%
Virginia
 
6

 
841

 
3.6
%
 
96.2
%
 
6

 
841

 
3.6
%
 
95.3
%
Illinois
 
5

 
817

 
3.5
%
 
98.2
%
 
6

 
920

 
4.0
%
 
96.8
%
Oregon
 
7

 
742

 
3.2
%
 
87.9
%
 
6

 
563

 
2.4
%
 
97.2
%
Washington
 
5

 
606

 
2.6
%
 
98.7
%
 
5

 
606

 
2.6
%
 
99.8
%
Massachusetts
 
3

 
516

 
2.2
%
 
96.1
%
 
3

 
519

 
2.2
%
 
92.5
%
Missouri
 
4

 
408

 
1.8
%
 
100.0
%
 
4

 
408

 
1.8
%
 
100.0
%
Tennessee
 
3

 
317

 
1.4
%
 
96.1
%
 
3

 
317

 
1.4
%
 
96.1
%
Connecticut
 
3

 
315

 
1.4
%
 
96.3
%
 
3

 
315

 
1.4
%
 
96.8
%
Pennsylvania
 
3

 
311

 
1.3
%
 
98.4
%
 
4

 
325

 
1.4
%
 
99.6
%
Indiana
 
3

 
281

 
1.2
%
 
93.8
%
 
3

 
240

 
1.0
%
 
96.1
%
Arizona
 
2

 
274

 
1.2
%
 
92.7
%
 
2

 
274

 
1.2
%
 
95.1
%
Delaware
 
1

 
232

 
1.0
%
 
90.1
%
 
1

 
232

 
1.0
%
 
92.0
%
Maryland
 
1

 
113

 
0.5
%
 
96.1
%
 
1

 
113

 
0.5
%
 
97.2
%
Michigan
 
1

 
97

 
0.4
%
 
95.7
%
 
2

 
118

 
0.5
%
 
96.4
%
Alabama
 
1

 
85

 
0.4
%
 
95.0
%
 
1

 
85

 
0.4
%
 
89.9
%
South Carolina
 
1

 
59

 
0.3
%
 
100.0
%
 
1

 
60

 
0.3
%
 
100.0
%
Total
 
200
 
23,280
 
100.0%
 
95.4%
 
202
 
23,200
 
100.0%
 
95.3%
    
Certain Consolidated Properties are encumbered by mortgage loans of $501.9 million, excluding debt premiums and discounts, as of December 31, 2015.

The weighted average annual effective rent for the consolidated portfolio of properties, net of tenant concessions, is $18.95 and $18.30 per square foot ("PSF") as of December 31, 2015 and 2014, respectively.

15



The following table is a list of the shopping centers, summarized by state and in order of largest holdings, presented for Unconsolidated Properties (includes properties owned by unconsolidated co-investment partnerships):
 
 
 
December 31, 2015
 
December 31, 2014
Location
 
Number of Properties
 
GLA (in thousands)
 
Percent of Total
GLA
 
Percent Leased
 
Number of Properties
 
GLA (in thousands)
 
Percent of Total
GLA
 
Percent Leased
California
 
20
 
2,652
 
18.0%
 
98.7%
 
21
 
2,782
 
18.6%
 
97.5%
Virginia
 
19
 
2,645
 
17.9%
 
96.9%
 
19
 
2,643
 
17.6%
 
97.4%
Maryland
 
13
 
1,491
 
10.1%
 
92.5%
 
13
 
1,490
 
9.9%
 
93.6%
North Carolina
 
8
 
1,275
 
8.6%
 
97.6%
 
8
 
1,272
 
8.5%
 
95.2%
Illinois
 
7
 
944
 
6.4%
 
94.6%
 
8
 
1,067
 
7.1%
 
94.5%
Texas
 
7
 
932
 
6.3%
 
99.3%
 
7
 
934
 
6.2%
 
97.5%
Colorado
 
5
 
862
 
5.8%
 
92.9%
 
5
 
862
 
5.8%
 
92.8%
Florida
 
8
 
682
 
4.6%
 
97.4%
 
8
 
682
 
4.6%
 
97.5%
Minnesota
 
5
 
674
 
4.6%
 
98.3%
 
5
 
674
 
4.5%
 
99.3%
Pennsylvania
 
6
 
664
 
4.5%
 
88.7%
 
6
 
661
 
4.4%
 
90.1%
Washington
 
5
 
621
 
4.2%
 
97.0%
 
5
 
621
 
4.1%
 
95.5%
Connecticut
 
1
 
186
 
1.3%
 
98.8%
 
1
 
186
 
1.2%
 
99.8%
South Carolina
 
2
 
162
 
1.1%
 
100.0%
 
2
 
162
 
1.1%
 
98.5%
New Jersey
 
2
 
158
 
1.1%
 
95.7%
 
2
 
158
 
1.1%
 
94.5%
New York
 
1
 
141
 
1.0%
 
100.0%
 
1
 
141
 
0.9%
 
100.0%
Indiana
 
2
 
139
 
0.9%
 
100.0%
 
2
 
138
 
0.9%
 
92.3%
Wisconsin
 
1
 
133
 
0.9%
 
92.8%
 
1
 
133
 
0.9%
 
92.8%
Arizona
 
1
 
108
 
0.7%
 
87.4%
 
1
 
108
 
0.7%
 
93.4%
Oregon
 
1
 
93
 
0.6%
 
98.1%
 
1
 
93
 
0.6%
 
98.1%
Georgia
 
1
 
86
 
0.6%
 
100.0%
 
1
 
86
 
0.6%
 
100.0%
Delaware
 
1
 
67
 
0.5%
 
91.0%
 
1
 
67
 
0.4%
 
90.1%
Dist. of Columbia
 
2
 
40
 
0.3%
 
100.0%
 
2
 
40
 
0.3%
 
97.0%
    Total
 
118
 
14,755
 
100.0%
 
96.3%
 
120
 
15,000
 
100.0%
 
96.0%

Certain Unconsolidated Properties are encumbered by mortgage loans of $1.4 billion, excluding debt premiums and discounts, as of December 31, 2015.

The weighted average annual effective rent for the unconsolidated portfolio of properties, net of tenant concessions, is $18.81 and $17.85 PSF as of December 31, 2015 and 2014, respectively.












16



The following table summarizes the largest tenants occupying our shopping centers for Consolidated Properties plus our pro-rata share of Unconsolidated Properties, as of December 31, 2015, based upon a percentage of total annualized base rent exceeding or equal to 0.5% (GLA and dollars in thousands):

Tenant
 
GLA
 
Percent of Company Owned GLA
 
Annualized Base Rent
 
Percent of Annualized Base Rent
 
Number of Leased Stores
 
Anchor Owned Stores (1)
Kroger
 
2,490
 
8.8%
$
24,886

 
4.7%
 
53
 
5
Publix
 
1,836
 
6.5%
 
19,345

 
3.7%
 
45
 
1
Albertsons/Safeway
 
1,374
 
4.8%
 
15,277

 
2.9%
 
42
 
7
Whole Foods
 
628
 
2.2%
 
12,091

 
2.3%
 
19
 
TJX Companies
 
778
 
2.7%
 
10,331

 
2.0%
 
36
 
CVS
 
485
 
1.7%
 
7,829

 
1.5%
 
44
 
PETCO
 
334
 
1.2%
 
7,294

 
1.4%
 
44
 
Ahold/Giant
 
419
 
1.5%
 
5,980

 
1.1%
 
13
 
H.E.B.
 
344
 
1.2%
 
5,439

 
1.0%
 
5
 
Ross Dress For Less
 
306
 
1.1%
 
4,949

 
0.9%
 
16
 
Trader Joe's
 
179
 
0.6%
 
4,920

 
0.9%
 
19
 
Wells Fargo Bank
 
82
 
0.3%
 
4,238

 
0.8%
 
39
 
Bank of America
 
84
 
0.3%
 
4,107

 
0.8%
 
30
 
JPMorgan Chase Bank
 
69
 
0.2%
 
4,037

 
0.8%
 
25
 
Starbucks
 
98
 
0.3%
 
3,976

 
0.8%
 
77
 
Nordstrom
 
138
 
0.5%
 
3,813

 
0.7%
 
4
 
Dick's Sporting Goods
 
267
 
0.9%
 
3,441

 
0.7%
 
5
 
Panera Bread
 
97
 
0.3%
 
3,227

 
0.6%
 
27
 
Sears Holdings
 
388
 
1.4%
 
3,069

 
0.6%
 
5
 
1
SUPERVALU
 
265
 
0.9%
 
3,055

 
0.6%
 
11
 
Wal-Mart
 
466
 
1.6%
 
3,026

 
0.6%
 
5
 
2
Subway
 
89
 
0.3%
 
2,991

 
0.6%
 
96
 
Sports Authority
 
134
 
0.5%
 
2,973

 
0.6%
 
3
 
Bed Bath & Beyond
 
175
 
0.6%
 
2,915

 
0.6%
 
6
 
Target
 
359
 
1.3%
 
2,907

 
0.6%
 
4
 
13
(1) Stores owned by anchor tenant that are attached to our centers.

Our leases for tenant space under 5,000 square feet generally have terms ranging from three to five years. Leases greater than 10,000 square feet generally have lease terms in excess of five years, mostly comprised of anchor tenants. Many of the anchor leases contain provisions allowing the tenant the option of extending the term of the lease at expiration. Our leases provide for the monthly payment in advance of fixed minimum rent, additional rents calculated as a percentage of the tenant's sales, the tenant's pro-rata share of real estate taxes, insurance, and common area maintenance (“CAM”) expenses, and reimbursement for utility costs if not directly metered.







    

17



The following table summarizes pro-rata lease expirations for the next ten years and thereafter, for our Consolidated and Unconsolidated Properties, assuming no tenants renew their leases (GLA and dollars in thousands):

Lease Expiration Year
 
Number of Tenants with Expiring Leases
 
Pro-rata Expiring GLA
 
Percent of Total Company GLA
 
Minimum Rent Expiring Leases (2)
 
Percent of Minimum Rent (2)
(1)
 
228

 
192

 
0.7
%
 
$
4,098

 
0.8
%
2016
 
879

 
2,056

 
7.6
%
 
40,640

 
7.8
%
2017
 
1,130

 
3,278

 
12.2
%
 
70,312

 
13.5
%
2018
 
983

 
2,930

 
10.9
%
 
58,840

 
11.3
%
2019
 
827

 
3,090

 
11.5
%
 
60,482

 
11.7
%
2020
 
901

 
3,009

 
11.2
%
 
62,398

 
12.0
%
2021
 
410

 
2,022

 
7.5
%
 
37,337

 
7.2
%
2022
 
273

 
1,732

 
6.4
%
 
28,983

 
5.6
%
2023
 
216

 
1,150

 
4.3
%
 
23,621

 
4.6
%
2024
 
251

 
1,577

 
5.8
%
 
30,067

 
5.8
%
2025
 
228

 
1,188

 
4.4
%
 
27,850

 
5.4
%
Thereafter
 
453

 
4,749

 
17.5
%
 
74,485

 
14.3
%
Total
 
6,779

 
26,973

 
100.0
%
 
$
519,113

 
100.0
%
(1) Leases currently under month-to-month rent or in process of renewal.
(2) Minimum rent includes current minimum rent and future contractual rent steps, but excludes additional rent such as percentage rent, common area maintenance, real estate taxes and insurance reimbursements.

During 2016, we have a total of 879 leases expiring, representing 2.1 million square feet of GLA. These expiring leases have an average base rent of $19.77 PSF. The average base rent of new leases signed during 2015 was $25.79 PSF. During periods of recession or when occupancy is low, tenants have more bargaining power, which may result in rental rate declines on new or renewal leases. In periods of recovery and/or when occupancy levels are high, landlords have more bargaining power, which generally results in rental rate growth on new and renewal leases. Based on current economic trends and expectations, and pro-rata percent leased of 95.6%, we expect base rent on new and renewal leases during 2016 to exceed rental rates on leases expiring in 2016. Exceptions may arise in certain geographic areas or at specific shopping centers based on the local economic situation, competition, location, and size of the space being leased, among other factors. Additionally, significant changes or uncertainties affecting micro- or macroeconomic climates may cause significant changes to our current expectations.


18



See the following property table and also see Item 7, Management's Discussion and Analysis for further information about our Consolidated and Unconsolidated Properties.

Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SFT
Shoppes at Fairhope Village
 
Mobile
 
AL
 
 
 
2008
 
2008
 
$—
 
85
 
95.0%
 
$14.72
 
Publix
Palm Valley Marketplace
 
Phoenix-Mesa-Scottsdale
 
AZ
 
20%
 
2001
 
1999
 
 
108
 
87.4%
 
14.08
 
Safeway
Pima Crossing
 
Phoenix-Mesa-Scottsdale
 
AZ
 
 
 
1999
 
1996
 
 
238
 
95.8%
 
14.48
 
Golf & Tennis Pro Shop, Inc., SteinMart
Shops at Arizona
 
Phoenix-Mesa-Scottsdale
 
AZ
 
 
 
2003
 
2000
 
 
36
 
72.4%
 
10.97
 
--
4S Commons Town Center
 
San Diego-Carlsbad-San Marcos
 
CA
 
85%
 
2004
 
2004
 
62,500
 
240
 
98.7%
 
30.50
 
Ralphs, Jimbo's...Naturally!
Amerige Heights Town Center
 
Los Angeles-Long Beach-Santa Ana
 
CA
 
 
 
2000
 
2000
 
16,349
 
89
 
100.0%
 
28.25
 
Albertsons, (Target)
Balboa Mesa Shopping Center
 
San Diego-Carlsbad-San Marcos
 
CA
 
 
 
2012
 
2014
 
 
207
 
100.0%
 
23.75
 
Von's Food & Drug, Kohl's
Bayhill Shopping Center
 
San Francisco-Oakland-Fremont
 
CA
 
40%
 
2005
 
1990
 
21,245
 
122
 
95.7%
 
22.65
 
Mollie Stone's Market
Blossom Valley
 
San Jose-Sunnyvale-Santa Clara
 
CA
 
20%
 
1999
 
1990
 
10,255
 
93
 
100.0%
 
25.21
 
Safeway
Brea Marketplace (6)
 
Los Angeles-Long Beach-Santa Ana
 
CA
 
40%
 
2005
 
1987
 
48,168
 
352
 
99.2%
 
17.55
 
Sprout's Markets, Target
Clayton Valley Shopping Center
 
San Francisco-Oakland-Fremont
 
CA
 
 
 
2003
 
2004
 
 
260
 
92.5%
 
21.38
 
Grocery Outlet, Orchard Supply Hardware
Corral Hollow
 
Stockton
 
CA
 
25%
 
2000
 
2000
 
 
167
 
100.0%
 
16.67
 
Safeway, Orchard Supply & Hardware
Costa Verde Center
 
San Diego-Carlsbad-San Marcos
 
CA
 
 
 
1999
 
1988
 
 
179
 
93.3%
 
35.66
 
Bristol Farms
Diablo Plaza
 
San Francisco-Oakland-Fremont
 
CA
 
 
 
1999
 
1982
 
 
63
 
100.0%
 
36.71
 
(Safeway)
East Washington Place
 
Santa Rosa-Petaluma
 
CA
 
 
 
2011
 
2011
 
 
203
 
97.9%
 
23.71
 
(Target), Dick's Sporting Goods, TJ Maxx
El Camino Shopping Center
 
Los Angeles-Long Beach-Santa Ana
 
CA
 
 
 
1999
 
1995
 
 
136
 
71.7%
 
34.02
 
--
El Cerrito Plaza
 
San Francisco-Oakland-Fremont
 
CA
 
 
 
2000
 
2000
 
37,989
 
256
 
95.8%
 
27.78
 
(Lucky's), Trader Joe's
El Norte Pkwy Plaza
 
San Diego-Carlsbad-San Marcos
 
CA
 
 
 
1999
 
2013
 
 
91
 
93.2%
 
16.70
 
Von's Food & Drug
Encina Grande
 
San Francisco-Oakland-Fremont
 
CA
 
 
 
1999
 
1965
 
 
106
 
100.0%
 
29.86
 
Whole Foods
Five Points Shopping Center
 
Santa Barbara-Santa Maria-Goleta
 
CA
 
40%
 
2005
 
1960
 
27,118
 
145
 
98.7%
 
26.72
 
Haggen
Folsom Prairie City Crossing
 
Sacramento--Arden-Arcade--Roseville
 
CA
 
 
 
1999
 
1999
 
 
90
 
95.8%
 
19.47
 
Safeway
French Valley Village Center
 
Riverside-San Bernardino-Ontario
 
CA
 
 
 
2004
 
2004
 
 
99
 
100.0%
 
24.52
 
Stater Bros.
Friars Mission Center
 
San Diego-Carlsbad-San Marcos
 
CA
 
 
 
1999
 
1989
 
 
147
 
99.0%
 
31.84
 
Ralphs
Gateway 101
 
San Francisco-Oakland-Fremont
 
CA
 
 
 
2008
 
2008
 
 
92
 
100.0%
 
32.05
 
(Home Depot), (Best Buy), Sports Authority, Nordstrom Rack
Gelson's Westlake Market Plaza
 
Oxnard-Thousand Oaks-Ventura
 
CA
 
 
 
2002
 
2002
 
 
85
 
92.2%
 
21.80
 
Gelson's Markets
Golden Hills Promenade
 
San Luis Obispo-Paso Robles
 
CA
 
 
 
2006
 
2012
 
 
242
 
98.9%
 
7.11
 
Lowe's
Granada Village
 
Los Angeles-Long Beach-Santa Ana
 
CA
 
40%
 
2005
 
2012
 
50,000
 
226
 
100.0%
 
22.03
 
Sprout's Markets
Hasley Canyon Village
 
Los Angeles-Long Beach-Santa Ana
 
CA
 
20%
 
2003
 
2003
 
8,360
 
66
 
100.0%
 
24.84
 
Ralphs
Heritage Plaza (6)
 
Los Angeles-Long Beach-Santa Ana
 
CA
 
 
 
1999
 
1981
 
 
230
 
98.6%
 
33.15
 
Ralphs
Indio Towne Center
 
Riverside-San Bernardino-Ontario
 
CA
 
 
 
2006
 
2010
 
 
180
 
95.8%
 
17.87
 
(Home Depot), (WinCo), Toys R Us
Jefferson Square
 
Riverside-San Bernardino-Ontario
 
CA
 
 
 
2007
 
2007
 
 
38
 
55.7%
 
14.81
 
--
Laguna Niguel Plaza
 
Los Angeles-Long Beach-Santa Ana
 
CA
 
40%
 
2005
 
1985
 
 
42
 
100.0%
 
25.84
 
(Albertsons)
Loehmanns Plaza California
 
San Jose-Sunnyvale-Santa Clara
 
CA
 
 
 
1999
 
1983
 
 
113
 
81.1%
 
20.88
 
(Safeway)
Marina Shores
 
Los Angeles-Long Beach-Santa Ana
 
CA
 
20%
 
2008
 
2001
 
11,079
 
68
 
100.0%
 
33.08
 
Whole Foods

19




Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SFT
Mariposa Shopping Center
 
San Jose-Sunnyvale-Santa Clara
 
CA
 
40%
 
2005
 
1957
 
20,529
 
127
 
100.0%
 
19.16
 
Safeway
Morningside Plaza
 
Los Angeles-Long Beach-Santa Ana
 
CA
 
 
 
1999
 
1996
 
 
91
 
100.0%
 
21.79
 
Stater Bros.
Navajo Shopping Center
 
San Diego-Carlsbad-San Marcos
 
CA
 
40%
 
2005
 
1964
 
8,375
 
102
 
96.9%
 
13.37
 
Albertsons
Newland Center
 
Los Angeles-Long Beach-Santa Ana
 
CA
 
 
 
1999
 
1985
 
 
152
 
96.5%
 
22.91
 
Albertsons
Oakbrook Plaza
 
Oxnard-Thousand Oaks-Ventura
 
CA
 
 
 
1999
 
1982
 
 
83
 
95.4%
 
17.67
 
Haggen
Oak Shade Town Center
 
Sacramento--Arden-Arcade--Roseville
 
CA
 
 
 
2011
 
1998
 
9,208
 
104
 
97.4%
 
19.54
 
Safeway
Persimmon Place
 
San Francisco-Oakland-Fremont
 
CA
 
 
 
2014
 
2014
 
 
153
 
96.5%
 
33.81
 
Whole Foods, Nordstrom Rack
Plaza Hermosa
 
Los Angeles-Long Beach-Santa Ana
 
CA
 
 
 
1999
 
2013
 
13,800
 
95
 
100.0%
 
24.80
 
Von's Food & Drug
Pleasant Hill Shopping Center
 
San Francisco-Oakland-Fremont
 
CA
 
40%
 
2005
 
1970
 
50,000
 
232
 
99.1%
 
23.98
 
Target, Toys "R" Us
Point Loma Plaza
 
San Diego-Carlsbad-San Marcos
 
CA
 
40%
 
2005
 
1987
 
26,487
 
213
 
99.2%
 
19.19
 
Von's Food & Drug
Powell Street Plaza
 
San Francisco-Oakland-Fremont
 
CA
 
 
 
2001
 
1987
 
 
166
 
100.0%
 
32.42
 
Trader Joe's
Raley's Supermarket
 
Sacramento--Arden-Arcade--Roseville
 
CA
 
20%
 
2007
 
1964
 
 
63
 
100.0%
 
5.41
 
Raley's
Rancho San Diego Village
 
San Diego-Carlsbad-San Marcos
 
CA
 
40%
 
2005
 
1981
 
22,825
 
153
 
92.8%
 
20.37
 
Haggen
Rona Plaza
 
Los Angeles-Long Beach-Santa Ana
 
CA
 
 
 
1999
 
1989
 
 
52
 
100.0%
 
20.05
 
Superior Super Warehouse
San Leandro Plaza
 
San Francisco-Oakland-Fremont
 
CA
 
 
 
1999
 
1982
 
 
50
 
100.0%
 
33.91
 
(Safeway)
Seal Beach
 
Los Angeles-Long Beach-Santa Ana
 
CA
 
20%
 
2002
 
1966
 
2,200
 
97
 
98.5%
 
23.85
 
Von's Food & Drug
Sequoia Station
 
San Francisco-Oakland-Fremont
 
CA
 
 
 
1999
 
1996
 
21,100
 
103
 
98.6%
 
37.74
 
(Safeway)
Silverado Plaza
 
Napa
 
CA
 
40%
 
2005
 
1974
 
10,253
 
85
 
100.0%
 
16.70
 
Nob Hill
Snell & Branham Plaza
 
San Jose-Sunnyvale-Santa Clara
 
CA
 
40%
 
2005
 
1988
 
13,686
 
92
 
100.0%
 
17.90
 
Safeway
South Bay Village
 
Los Angeles-Long Beach-Santa Ana
 
CA
 
 
 
2012
 
2012
 
 
108
 
100.0%
 
19.11
 
Wal-Mart, Orchard Supply Hardware
Strawflower Village
 
San Francisco-Oakland-Fremont
 
CA
 
 
 
1999
 
1985
 
 
79
 
96.2%
 
18.98
 
Safeway
Tassajara Crossing
 
San Francisco-Oakland-Fremont
 
CA
 
 
 
1999
 
1990
 
19,800
 
146
 
99.0%
 
22.71
 
Safeway
Twin Oaks Shopping Center
 
Los Angeles-Long Beach-Santa Ana
 
CA
 
40%
 
2005
 
1978
 
10,117
 
98
 
98.6%
 
17.81
 
Ralphs
Twin Peaks
 
San Diego-Carlsbad-San Marcos
 
CA
 
 
 
1999
 
1988
 
 
208
 
76.8%
 
20.23
 
Target
The Hub Hillcrest Market (fka Uptown District)
 
San Diego-Carlsbad-San Marcos
 
CA
 
 
 
2012
 
2015
 
 
149
 
92.2%
 
36.43
 
Ralphs, Trader Joe's
Valencia Crossroads
 
Los Angeles-Long Beach-Santa Ana
 
CA
 
 
 
2002
 
2003
 
 
173
 
100.0%
 
25.56
 
Whole Foods, Kohl's
Village at La Floresta (7)
 
Los Angeles-Long Beach-Santa Ana
 
CA
 
 
 
2014
 
2014
 
 
87
 
92.1%
 
31.49
 
Whole Foods
West Park Plaza
 
San Jose-Sunnyvale-Santa Clara
 
CA
 
 
 
1999
 
1996
 
 
88
 
100.0%
 
17.49
 
Safeway
Westlake Village Plaza and Center
 
Oxnard-Thousand Oaks-Ventura
 
CA
 
 
 
1999
 
2015
 
 
197
 
100.0%
 
35.52
 
Von's Food & Drug and Sprouts
Woodman Van Nuys
 
Los Angeles-Long Beach-Santa Ana
 
CA
 
 
 
1999
 
1992
 
 
108
 
100.0%
 
14.90
 
El Super
Woodside Central
 
San Francisco-Oakland-Fremont
 
CA
 
 
 
1999
 
1993
 
 
81
 
100.0%
 
23.61
 
(Target)
Ygnacio Plaza
 
San Francisco-Oakland-Fremont
 
CA
 
40%
 
2005
 
1968
 
27,859
 
110
 
97.2%
 
36.26
 
Sports Basement, Fresh & Easy
Applewood Shopping Center
 
Denver-Aurora
 
CO
 
40%
 
2005
 
1956
 
 
381
 
86.0%
 
11.28
 
King Soopers, Wal-Mart
Arapahoe Village
 
Boulder
 
CO
 
40%
 
2005
 
1957
 
14,169
 
159
 
96.9%
 
17.55
 
Safeway

20




Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SFT
Belleview Square
 
Denver-Aurora
 
CO
 
 
 
2004
 
2013
 
 
117
 
99.0%
 
17.15
 
King Soopers
Boulevard Center
 
Denver-Aurora
 
CO
 
 
 
1999
 
1986
 
 
79
 
94.1%
 
26.15
 
(Safeway)
Buckley Square
 
Denver-Aurora
 
CO
 
 
 
1999
 
1978
 
 
116
 
97.4%
 
10.23
 
King Soopers
Centerplace of Greeley III Phase I
 
Greeley
 
CO
 
 
 
2007
 
2007
 
 
119
 
100.0%
 
14.17
 
Sports Authority
Cherrywood Square
 
Denver-Aurora
 
CO
 
40%
 
2005
 
1978
 
4,374
 
97
 
100.0%
 
9.84
 
King Soopers
Crossroads Commons
 
Boulder
 
CO
 
20%
 
2001
 
1986
 
16,759
 
143
 
100.0%
 
26.74
 
Whole Foods
Falcon Marketplace
 
Colorado Springs
 
CO
 
 
 
2005
 
2005
 
 
22
 
78.7%
 
21.56
 
(Wal-Mart)
Hilltop Village
 
Denver-Aurora
 
CO
 
 
 
2002
 
2003
 
7,500
 
100
 
93.8%
 
10.74
 
King Soopers
Kent Place
 
Denver-Aurora
 
CO
 
50%
 
2011
 
2011
 
8,250
 
48
 
100.0%
 
19.28
 
King Soopers
Littleton Square
 
Denver-Aurora
 
CO
 
 
 
1999
 
2015
 
 
99
 
100.0%
 
10.28
 
King Soopers
Lloyd King Center
 
Denver-Aurora
 
CO
 
 
 
1998
 
1998
 
 
83
 
96.9%
 
11.69
 
King Soopers
Marketplace at Briargate
 
Colorado Springs
 
CO
 
 
 
2006
 
2006
 
 
29
 
91.8%
 
28.31
 
(King Soopers)
Monument Jackson Creek
 
Colorado Springs
 
CO
 
 
 
1998
 
1999
 
 
85
 
100.0%
 
11.57
 
King Soopers
Ralston Square Shopping Center
 
Denver-Aurora
 
CO
 
40%
 
2005
 
1977
 
4,374
 
83
 
96.5%
 
9.99
 
King Soopers
Shops at Quail Creek
 
Denver-Aurora
 
CO
 
 
 
2008
 
2008
 
 
38
 
100.0%
 
26.99
 
(King Soopers)
South Lowry Square
 
Denver-Aurora
 
CO
 
 
 
1999
 
1993
 
 
120
 
34.7%
 
17.75
 
--
Stroh Ranch
 
Denver-Aurora
 
CO
 
 
 
1998
 
1998
 
 
93
 
100.0%
 
12.59
 
King Soopers
Woodmen Plaza
 
Colorado Springs
 
CO
 
 
 
1998
 
1998
 
 
116
 
94.2%
 
12.92
 
King Soopers
Black Rock
 
Bridgeport-Stamford-Norwalk
 
CT
 
80%
 
2014
 
1996
 
19,828
 
98
 
95.9%
 
31.89
 
--
Brick Walk (6)
 
Bridgeport-Stamford-Norwalk
 
CT
 
80%
 
2014
 
2007
 
31,514
 
124
 
93.8%
 
43.44
 
--
Corbin's Corner
 
Hartford-West Hartford-East Hartford
 
CT
 
40%
 
2005
 
2015
 
40,295
 
186
 
98.8%
 
26.29
 
Trader Joe's, Toys "R" Us, Best Buy
Fairfield Center (6)
 
Bridgeport-Stamford-Norwalk
 
CT
 
80%
 
2014
 
2000
 
 
93
 
100.0%
 
33.10
 
--
Shops at The Columbia
 
Washington-Arlington-Alexandria
 
DC
 
25%
 
2006
 
2006
 
 
23
 
100.0%
 
37.73
 
Trader Joe's
Spring Valley Shopping Center
 
Washington-Arlington-Alexandria
 
DC
 
40%
 
2005
 
1930
 
12,772
 
17
 
100.0%
 
90.23
 
--
Pike Creek
 
Philadelphia-Camden-Wilmington
 
DE
 
 
 
1998
 
2013
 
 
232
 
90.1%
 
13.61
 
Acme Markets, K-Mart
Shoppes of Graylyn
 
Philadelphia-Camden-Wilmington
 
DE
 
40%
 
2005
 
1971
 
 
67
 
91.0%
 
22.55
 
--
Anastasia Plaza
 
Jacksonville
 
FL
 
 
 
1993
 
1988
 
 
102
 
99.4%
 
12.71
 
Publix
Aventura Shopping Center
 
Miami-Fort Lauderdale-Miami Beach
 
FL
 
 
 
1994
 
1974
 
 
103
 
70.1%
 
19.24
 
Publix
Berkshire Commons
 
Naples-Marco Island
 
FL
 
 
 
1994
 
1992
 
7,500
 
110
 
96.9%
 
13.73
 
Publix
Bloomingdale Square
 
Tampa-St. Petersburg-Clearwater
 
FL
 
 
 
1998
 
1987
 
 
268
 
97.1%
 
9.37
 
Publix, Wal-Mart, Bealls
Boynton Lakes Plaza
 
Miami-Fort Lauderdale-Miami Beach
 
FL
 
 
 
1997
 
2012
 
 
110
 
94.9%
 
15.62
 
Publix
Brooklyn Station on Riverside (7)
 
Jacksonville
 
FL
 
 
 
2013
 
2013
 
 
50
 
88.0%
 
24.75
 
The Fresh Market
Caligo Crossing
 
Miami-Fort Lauderdale-Miami Beach
 
FL
 
 
 
2007
 
2007
 
 
11
 
100.0%
 
44.48
 
(Kohl's)
Canopy Oak Center
 
Ocala
 
FL
 
50%
 
2006
 
2006
 
 
90
 
91.8%
 
19.06
 
Publix
Carriage Gate
 
Tallahassee
 
FL
 
 
 
1994
 
2013
 
 
74
 
88.5%
 
21.16
 
Trader Joe's
Chasewood Plaza
 
Miami-Fort Lauderdale-Miami Beach
 
FL
 
 
 
1993
 
2015
 
 
151
 
96.7%
 
23.88
 
Publix
Corkscrew Village
 
Cape Coral-Fort Myers
 
FL
 
 
 
2007
 
1997
 
7,642
 
82
 
98.3%
 
13.27
 
Publix

21




Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SFT
Courtyard Shopping Center
 
Jacksonville
 
FL
 
 
 
1993
 
1987
 
 
137
 
100.0%
 
3.50
 
(Publix), Target
Fleming Island
 
Jacksonville
 
FL
 
 
 
1998
 
2000
 
 
132
 
99.3%
 
14.79
 
Publix, (Target)
Fountain Square
 
Miami-Fort Lauderdale-Miami Beach
 
FL
 
 
 
2013
 
2013
 
 
177
 
96.4%
 
25.38
 
Publix, (Target)
Garden Square
 
Miami-Fort Lauderdale-Miami Beach
 
FL
 
 
 
1997
 
1991
 
 
90
 
97.7%
 
15.99
 
Publix
Grande Oak
 
Cape Coral-Fort Myers
 
FL
 
 
 
2000
 
2000
 
 
79
 
100.0%
 
15.26
 
Publix
Hibernia Pavilion
 
Jacksonville
 
FL
 
 
 
2006
 
2006
 
 
51
 
87.1%
 
15.62
 
Publix
Hibernia Plaza
 
Jacksonville
 
FL
 
 
 
2006
 
2006
 
 
8
 
—%
 
 
--
John's Creek Center
 
Jacksonville
 
FL
 
20%
 
2003
 
2004
 
9,000
 
75
 
100.0%
 
13.83
 
Publix
Julington Village
 
Jacksonville
 
FL
 
20%
 
1999
 
1999
 
9,500
 
82
 
100.0%
 
15.16
 
Publix
Lynnhaven
 
Panama City-Lynn Haven
 
FL
 
50%
 
2001
 
2001
 
 
64
 
95.6%
 
12.54
 
Publix
Marketplace Shopping Center
 
Tampa-St. Petersburg-Clearwater
 
FL
 
 
 
1995
 
2012
 
 
90
 
87.2%
 
18.13
 
LA Fitness
Millhopper Shopping Center
 
Gainesville
 
FL
 
 
 
1993
 
2010
 
 
76
 
100.0%
 
16.25
 
Publix
Naples Walk Shopping Center
 
Naples-Marco Island
 
FL
 
 
 
2007
 
1999
 
14,488
 
125
 
86.0%
 
14.80
 
Publix
Newberry Square
 
Gainesville
 
FL
 
 
 
1994
 
1986
 
 
181
 
83.9%
 
7.14
 
Publix, K-Mart
Nocatee Town Center
 
Jacksonville
 
FL
 
 
 
2007
 
2015
 
 
79
 
100.0%
 
15.18
 
Publix
Northgate Square
 
Tampa-St. Petersburg-Clearwater
 
FL
 
 
 
2007
 
1995
 
 
75
 
100.0%
 
13.71
 
Publix
Oakleaf Commons
 
Jacksonville
 
FL
 
 
 
2006
 
2006
 
 
74
 
88.6%
 
13.21
 
Publix
Ocala Corners (6)
 
Tallahassee
 
FL
 
 
 
2000
 
2000
 
4,826
 
87
 
100.0%
 
14.26
 
Publix
Old St Augustine Plaza
 
Jacksonville
 
FL
 
 
 
1996
 
1990
 
 
238
 
92.7%
 
7.74
 
Publix, Burlington Coat Factory, Hobby Lobby
Pebblebrook Plaza
 
Naples-Marco Island
 
FL
 
50%
 
2000
 
2000
 
 
77
 
100.0%
 
14.26
 
Publix
Pine Tree Plaza
 
Jacksonville
 
FL
 
 
 
1997
 
1999
 
 
63
 
95.3%
 
12.97
 
Publix
Plantation Plaza
 
Jacksonville
 
FL
 
20%
 
2004
 
2004
 
10,500
 
78
 
93.5%
 
15.54
 
Publix
Regency Square
 
Tampa-St. Petersburg-Clearwater
 
FL
 
 
 
1993
 
2013
 
 
352
 
98.0%
 
15.84
 
AMC Theater, Michaels, (Best Buy), (Macdill)
Seminole Shoppes
 
Jacksonville
 
FL
 
50%
 
2009
 
2009
 
9,698
 
77
 
100.0%
 
21.80
 
Publix
Shoppes @ 104
 
Miami-Fort Lauderdale-Miami Beach
 
FL
 
 
 
1998
 
1990
 
 
108
 
98.0%
 
17.77
 
Winn-Dixie
Shoppes at Bartram Park
 
Jacksonville
 
FL
 
50%
 
2005
 
2004
 
 
126
 
100.0%
 
18.33
 
Publix, (Kohl's)
Shops at John's Creek
 
Jacksonville
 
FL
 
 
 
2003
 
2004
 
 
15
 
100.0%
 
19.79
 
--
Starke (6)
 
Other
 
FL
 
 
 
2000
 
2000
 
 
13
 
100.0%
 
25.56
 
--
Suncoast Crossing (6)
 
Tampa-St. Petersburg-Clearwater
 
FL
 
 
 
2007
 
2007
 
 
118
 
92.0%
 
5.99
 
Kohl's, (Target)
Town Square
 
Tampa-St. Petersburg-Clearwater
 
FL
 
 
 
1997
 
1999
 
 
44
 
100.0%
 
28.53
 
--
University Commons (6)
 
Miami-Fort Lauderdale-Miami Beach
 
FL
 
 
 
2015
 
2001
 
38,000
 
180
 
100.0%
 
30.49
 
Whole Foods, Nordstrom Rack
Village Center
 
Tampa-St. Petersburg-Clearwater
 
FL
 
 
 
1995
 
2014
 
 
187
 
96.5%
 
18.21
 
Publix
Welleby Plaza
 
Miami-Fort Lauderdale-Miami Beach
 
FL
 
 
 
1996
 
1982
 
 
110
 
93.3%
 
12.63
 
--
Wellington Town Square
 
Miami-Fort Lauderdale-Miami Beach
 
FL
 
 
 
1996
 
1982
 
12,800
 
107
 
94.3%
 
20.78
 
Publix
Westchase
 
Tampa-St. Petersburg-Clearwater
 
FL
 
 
 
2007
 
1998
 
6,941
 
79
 
94.5%
 
14.47
 
Publix
Willa Springs
 
Orlando
 
FL
 
20%
 
2000
 
2000
 
7,020
 
90
 
97.1%
 
19.14
 
Publix

22




Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SFT
Ashford Place
 
Atlanta-Sandy Springs-Marietta
 
GA
 
 
 
1997
 
1993
 
 
53
 
97.2%
 
20.50
 
--
Briarcliff La Vista
 
Atlanta-Sandy Springs-Marietta
 
GA
 
 
 
1997
 
1962
 
 
39
 
100.0%
 
20.01
 
--
Briarcliff Village (6)
 
Atlanta-Sandy Springs-Marietta
 
GA
 
 
 
1997
 
1990
 
 
190
 
94.2%
 
15.61
 
Publix
Brighten Park (fka Loehmanns Plaza Georgia)
 
Atlanta-Sandy Springs-Marietta
 
GA
 
 
 
1997
 
1986
 
 
138
 
75.2%
 
24.73
 
The Fresh Market
Buckhead Court
 
Atlanta-Sandy Springs-Marietta
 
GA
 
 
 
1997
 
1984
 
 
48
 
92.5%
 
20.73
 
--
Cambridge Square
 
Atlanta-Sandy Springs-Marietta
 
GA
 
 
 
1996
 
1979
 
 
71
 
98.7%
 
14.30
 
Kroger
Cornerstone Square
 
Atlanta-Sandy Springs-Marietta
 
GA
 
 
 
1997
 
1990
 
 
80
 
100.0%
 
15.33
 
Aldi
Delk Spectrum
 
Atlanta-Sandy Springs-Marietta
 
GA
 
 
 
1998
 
1991
 
 
99
 
95.7%
 
14.67
 
Publix
Dunwoody Hall
 
Atlanta-Sandy Springs-Marietta
 
GA
 
20%
 
1997
 
1986
 
6,855
 
86
 
100.0%
 
17.57
 
Publix
Dunwoody Village
 
Atlanta-Sandy Springs-Marietta
 
GA
 
 
 
1997
 
1975
 
 
121
 
90.5%
 
18.27
 
The Fresh Market
Howell Mill Village (6)
 
Atlanta-Sandy Springs-Marietta
 
GA
 
 
 
2004
 
1984
 
 
92
 
96.0%
 
19.34
 
Publix
Paces Ferry Plaza (6)
 
Atlanta-Sandy Springs-Marietta
 
GA
 
 
 
1997
 
1987
 
 
62
 
70.7%
 
33.19
 
--
Powers Ferry Square
 
Atlanta-Sandy Springs-Marietta
 
GA
 
 
 
1997
 
2013
 
 
101
 
99.4%
 
27.88
 
--
Powers Ferry Village
 
Atlanta-Sandy Springs-Marietta
 
GA
 
 
 
1997
 
1994
 
 
79
 
100.0%
 
13.02
 
Publix
Russell Ridge
 
Atlanta-Sandy Springs-Marietta
 
GA
 
 
 
1994
 
1995
 
 
101
 
98.6%
 
12.59
 
Kroger
Sandy Springs
 
Atlanta-Sandy Springs-Marietta
 
GA
 
 
 
2012
 
2006
 
 
116
 
92.5%
 
21.54
 
Trader Joe's
Civic Center Plaza
 
Chicago-Naperville-Joliet
 
IL
 
40%
 
2005
 
1989
 
22,000
 
265
 
98.9%
 
11.23
 
Super H Mart, Home Depot
Clybourn Commons
 
Chicago-Naperville-Joliet
 
IL
 
 
 
2014
 
1999
 
 
32
 
100.0%
 
34.81
 
--
Glen Oak Plaza
 
Chicago-Naperville-Joliet
 
IL
 
 
 
2010
 
1967
 
 
63
 
95.2%
 
22.99
 
Trader Joe's
Hinsdale
 
Chicago-Naperville-Joliet
 
IL
 
 
 
1998
 
2015
 
 
179
 
95.0%
 
15.39
 
Whole Foods
McHenry Commons Shopping Center
 
Chicago-Naperville-Joliet
 
IL
 
40%
 
2005
 
1988
 
 
99
 
91.1%
 
7.26
 
Hobby Lobby
Riverside Sq & River's Edge
 
Chicago-Naperville-Joliet
 
IL
 
40%
 
2005
 
1986
 
15,291
 
169
 
91.1%
 
15.86
 
Mariano's Fresh Market
Roscoe Square
 
Chicago-Naperville-Joliet
 
IL
 
40%
 
2005
 
2012
 
11,543
 
140
 
100.0%
 
19.81
 
Mariano's Fresh Market
Shorewood Crossing
 
Chicago-Naperville-Joliet
 
IL
 
20%
 
2004
 
2001
 
 
88
 
92.2%
 
14.42
 
Mariano's Fresh Market
Shorewood Crossing II
 
Chicago-Naperville-Joliet
 
IL
 
20%
 
2007
 
2005
 
 
86
 
100.0%
 
14.07
 
Babies R Us
Stonebrook Plaza Shopping Center
 
Chicago-Naperville-Joliet
 
IL
 
40%
 
2005
 
1984
 
8,161
 
96
 
82.0%
 
11.80
 
Jewel-Osco
Westchester Commons (fka Westbrook Commons)
 
Chicago-Naperville-Joliet
 
IL
 
 
 
2001
 
2014
 
 
139
 
98.3%
 
17.56
 
Mariano's Fresh Market
Willow Festival (6)
 
Chicago-Naperville-Joliet
 
IL
 
 
 
2010
 
2007
 
39,505
 
404
 
100.0%
 
16.20
 
Whole Foods, Lowe's
Airport Crossing
 
Chicago-Naperville-Joliet
 
IN
 
88%
 
2006
 
2006
 
 
12
 
77.3%
 
18.86
 
(Kohl's)
Augusta Center
 
Chicago-Naperville-Joliet
 
IN
 
96%
 
2006
 
2006
 
 
15
 
100.0%
 
22.54
 
(Menards)
Shops on Main
 
Chicago-Naperville-Joliet
 
IN
 
92%
 
2013
 
2013
 
 
254
 
94.2%
 
14.70
 
Whole Foods, Gordmans
Willow Lake Shopping Center
 
Indianapolis
 
IN
 
40%
 
2005
 
1987
 
 
86
 
100.0%
 
15.99
 
(Kroger)
Willow Lake West Shopping Center
 
Indianapolis
 
IN
 
40%
 
2005
 
2001
 
10,000
 
53
 
100.0%
 
24.28
 
Trader Joe's
Fellsway Plaza (6)
 
Boston-Cambridge-Quincy
 
MA
 
75%
 
2013
 
2015
 
34,154
 
155
 
98.3%
 
22.17
 
Stop & Shop
Shops at Saugus
 
Boston-Cambridge-Quincy
 
MA
 
 
 
2006
 
2006
 
 
87
 
92.1%
 
28.68
 
Trader Joe's

23




Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SFT
Twin City Plaza
 
Boston-Cambridge-Quincy
 
MA
 
 
 
2006
 
2004
 
 
274
 
96.2%
 
17.90
 
Shaw's, Marshall's
Bowie Plaza
 
Washington-Arlington-Alexandria
 
MD
 
40%
 
2005
 
1966
 
 
103
 
96.1%
 
20.47
 
--
Burnt Mills (6)
 
Washington-Arlington-Alexandria
 
MD
 
20%
 
2013
 
2004
 
7,000
 
31
 
100.0%
 
37.83
 
Trader Joe's
Clinton Park
 
Washington-Arlington-Alexandria
 
MD
 
20%
 
2003
 
2003
 
 
206
 
74.2%
 
9.47
 
Sears, (Toys "R" Us)
Cloppers Mill Village
 
Washington-Arlington-Alexandria
 
MD
 
40%
 
2005
 
1995
 
 
137
 
96.8%
 
17.46
 
Shoppers Food Warehouse
Festival at Woodholme
 
Baltimore-Towson
 
MD
 
40%
 
2005
 
1986
 
21,245
 
81
 
95.4%
 
37.17
 
Trader Joe's
Firstfield Shopping Center
 
Washington-Arlington-Alexandria
 
MD
 
40%
 
2005
 
2014
 
 
22
 
95.5%
 
37.08
 
--
King Farm Village Center
 
Washington-Arlington-Alexandria
 
MD
 
25%
 
2004
 
2015
 
27,500
 
118
 
91.4%
 
24.85
 
Safeway
Parkville Shopping Center
 
Baltimore-Towson
 
MD
 
40%
 
2005
 
2013
 
11,782
 
162
 
91.6%
 
14.53
 
Giant Food
Southside Marketplace
 
Baltimore-Towson
 
MD
 
40%
 
2005
 
2011
 
14,643
 
125
 
96.0%
 
18.49
 
Shoppers Food Warehouse
Takoma Park
 
Washington-Arlington-Alexandria
 
MD
 
40%
 
2005
 
1960
 
 
104
 
93.1%
 
12.28
 
Shoppers Food Warehouse
Valley Centre
 
Baltimore-Towson
 
MD
 
40%
 
2005
 
1987
 
19,018
 
220
 
97.0%
 
15.64
 
Aldi, TJ Maxx
Village at Lee Airpark (6)
 
Baltimore-Towson
 
MD
 
 
 
2005
 
2014
 
 
113
 
96.1%
 
28.64
 
Giant Food, (Sunrise)
Watkins Park Plaza
 
Washington-Arlington-Alexandria
 
MD
 
40%
 
2005
 
1985
 
 
111
 
98.5%
 
24.10
 
LA Fitness
Woodmoor Shopping Center
 
Washington-Arlington-Alexandria
 
MD
 
40%
 
2005
 
1954
 
6,575
 
69
 
97.7%
 
27.42
 
--
Fenton Marketplace
 
Flint
 
MI
 
 
 
1999
 
1999
 
 
97
 
95.7%
 
7.11
 
Family Farm & Home
Brentwood Plaza
 
St. Louis
 
MO
 
 
 
2007
 
2002
 
 
60
 
100.0%
 
10.36
 
Schnucks
Bridgeton
 
St. Louis
 
MO
 
 
 
2007
 
2005
 
 
71
 
100.0%
 
11.98
 
Schnucks, (Home Depot)
Dardenne Crossing
 
St. Louis
 
MO
 
 
 
2007
 
1996
 
 
67
 
100.0%
 
10.84
 
Schnucks
Kirkwood Commons
 
St. Louis
 
MO
 
 
 
2007
 
2000
 
10,528
 
210
 
100.0%
 
9.83
 
Wal-Mart, (Target), (Lowe's)
Apple Valley Square
 
Minneapolis-St. Paul-Bloomington
 
MN
 
25%
 
2006
 
1998
 
16,000
 
185
 
97.6%
 
12.40
 
Rainbow Foods, Jo-Ann Fabrics, (Burlington Coat Factory)
Calhoun Commons
 
Minneapolis-St. Paul-Bloomington
 
MN
 
25%
 
2011
 
1999
 
3,008
 
66
 
100.0%
 
24.32
 
Whole Foods
Colonial Square
 
Minneapolis-St. Paul-Bloomington
 
MN
 
40%
 
2005
 
2014
 
9,794
 
93
 
98.8%
 
22.14
 
Lund's
Rockford Road Plaza
 
Minneapolis-St. Paul-Bloomington
 
MN
 
40%
 
2005
 
1991
 
20,000
 
204
 
100.0%
 
12.07
 
Kohl's
Rockridge Center
 
Minneapolis-St. Paul-Bloomington
 
MN
 
20%
 
2011
 
2006
 
14,500
 
125
 
95.4%
 
13.08
 
Cub Foods
Cameron Village
 
Raleigh-Cary
 
NC
 
30%
 
2004
 
2014
 
60,000
 
558
 
97.4%
 
20.04
 
Harris Teeter, The Fresh Market
Carmel Commons
 
Charlotte-Gastonia-Concord
 
NC
 
 
 
1997
 
2012
 
 
133
 
95.1%
 
18.84
 
The Fresh Market
Cochran Commons
 
Charlotte-Gastonia-Concord
 
NC
 
20%
 
2007
 
2003
 
5,506
 
66
 
95.6%
 
15.57
 
Harris Teeter
Colonnade Center
 
Raleigh-Cary
 
NC
 
 
 
2009
 
2009
 
 
58
 
100.0%
 
26.79
 
Whole Foods
Glenwood Village
 
Raleigh-Cary
 
NC
 
 
 
1997
 
1983
 
 
43
 
100.0%
 
15.02
 
Harris Teeter
Harris Crossing
 
Raleigh-Cary
 
NC
 
 
 
2007
 
2007
 
 
65
 
89.4%
 
8.26
 
Harris Teeter
Holly Park
 
Raleigh-Cary
 
NC
 
99%
 
2013
 
1969
 
 
160
 
100.0%
 
14.70
 
Trader Joe's
Lake Pine Plaza
 
Raleigh-Cary
 
NC
 
 
 
1998
 
1997
 
 
88
 
96.8%
 
11.97
 
Kroger
Maynard Crossing
 
Raleigh-Cary
 
NC
 
20%
 
1998
 
1997
 
8,933
 
123
 
94.2%
 
14.79
 
Kroger
Phillips Place
 
Charlotte-Gastonia-Concord
 
NC
 
50%
 
2012
 
2005
 
44,500
 
133
 
98.5%
 
31.54
 
Dean & Deluca
Providence Commons
 
Charlotte-Gastonia-Concord
 
NC
 
25%
 
2010
 
1994
 
 
74
 
100.0%
 
18.07
 
Harris Teeter

24




Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SFT
Shops at Erwin Mill (fka Erwin Square)
 
Durham-Chapel Hill
 
NC
 
55%
 
2012
 
2012
 
10,000
 
87
 
98.2%
 
17.06
 
Harris Teeter
Shoppes of Kildaire
 
Raleigh-Cary
 
NC
 
40%
 
2005
 
1986
 
20,000
 
145
 
100.0%
 
17.53
 
Trader Joe's
Southpoint Crossing
 
Durham-Chapel Hill
 
NC
 
 
 
1998
 
1998
 
 
103
 
96.6%
 
15.36
 
Kroger
Sutton Square
 
Raleigh-Cary
 
NC
 
20%
 
2006
 
1985
 
 
101
 
96.8%
 
17.70
 
The Fresh Market
Village Plaza
 
Durham-Chapel Hill
 
NC
 
20%
 
2012
 
1975
 
8,000
 
75
 
98.0%
 
17.17
 
Whole Foods
Willow Oaks (7)
 
Charlotte-Gastonia-Concord
 
NC
 
 
 
2014
 
2014
 
 
69
 
81.5%
 
16.10
 
Publix
Woodcroft Shopping Center
 
Durham-Chapel Hill
 
NC
 
 
 
1996
 
1984
 
 
90
 
95.7%
 
12.31
 
Food Lion
Plaza Square
 
New York-Northern New Jersey-Long Island
 
NJ
 
40%
 
2005
 
1990
 
13,598
 
104
 
100.0%
 
21.84
 
Shop Rite
Haddon Commons
 
Philadelphia-Camden-Wilmington
 
NJ
 
40%
 
2005
 
1985
 
 
54
 
87.5%
 
12.63
 
Acme Markets
Lake Grove Commons
 
New York-Northern New Jersey-Long Island
 
NY
 
40%
 
2012
 
2008
 
31,970
 
141
 
100.0%
 
32.32
 
Whole Foods, LA Fitness
Cherry Grove
 
Cincinnati-Middletown
 
OH
 
 
 
1998
 
2012
 
 
196
 
93.6%
 
11.27
 
Kroger
East Pointe
 
Columbus
 
OH
 
 
 
1998
 
2014
 
 
107
 
98.7%
 
9.63
 
Kroger
Hyde Park
 
Cincinnati-Middletown
 
OH
 
 
 
1997
 
1995
 
 
397
 
99.7%
 
15.27
 
Kroger, Remke Markets
Kroger New Albany Center
 
Columbus
 
OH
 
50%
 
1999
 
1999
 
 
93
 
100.0%
 
12.03
 
Kroger
Maxtown Road (Northgate)
 
Columbus
 
OH
 
 
 
1998
 
1996
 
 
85
 
100.0%
 
11.16
 
Kroger, (Home Depot)
Red Bank Village
 
Cincinnati-Middletown
 
OH
 
 
 
2006
 
2006
 
 
164
 
100.0%
 
6.39
 
Wal-Mart
Regency Commons
 
Cincinnati-Middletown
 
OH
 
 
 
2004
 
2004
 
 
34
 
100.0%
 
21.74
 
--
Westchester Plaza
 
Cincinnati-Middletown
 
OH
 
 
 
1998
 
1988
 
 
88
 
98.4%
 
9.47
 
Kroger
Corvallis Market Center
 
Corvallis
 
OR
 
 
 
2006
 
2006
 
 
85
 
100.0%
 
20.03
 
Trader Joe's
Greenway Town Center
 
Portland-Vancouver-Beaverton
 
OR
 
40%
 
2005
 
2014
 
 
93
 
98.1%
 
13.59
 
Whole Foods
Murrayhill Marketplace
 
Portland-Vancouver-Beaverton
 
OR
 
 
 
1999
 
1988
 
 
149
 
92.7%
 
15.95
 
Safeway
Northgate Marketplace
 
Medford
 
OR
 
 
 
2011
 
2011
 
 
81
 
100.0%
 
21.39
 
Trader Joe's
Northgate Marketplace Ph II (7)
 
Medford
 
OR
 
 
 
2011
 
2015
 
 
179
 
 
 
11.20
 
 Dick's Sporting Goods
Sherwood Crossroads
 
Portland-Vancouver-Beaverton
 
OR
 
 
 
1999
 
1999
 
 
88
 
95.4%
 
10.99
 
Safeway
Tanasbourne Market (6)
 
Portland-Vancouver-Beaverton
 
OR
 
 
 
2006
 
2006
 
 
71
 
100.0%
 
27.41
 
Whole Foods
Walker Center
 
Portland-Vancouver-Beaverton
 
OR
 
 
 
1999
 
1987
 
 
90
 
90.4%
 
18.89
 
Bed Bath and Beyond
Allen Street Shopping Center
 
Allentown-Bethlehem-Easton
 
PA
 
40%
 
2005
 
1958
 
 
46
 
92.0%
 
14.08
 
Ahart's Market
City Avenue Shopping Center
 
Philadelphia-Camden-Wilmington
 
PA
 
40%
 
2005
 
1960
 
 
162
 
78.4%
 
19.98
 
Ross Dress for Less
Gateway Shopping Center
 
Philadelphia-Camden-Wilmington
 
PA
 
 
 
2004
 
1960
 
 
214
 
99.3%
 
28.14
 
Trader Joe's
Hershey (6)
 
Harrisburg-Carlisle
 
PA
 
 
 
2000
 
2000
 
 
6
 
100.0%
 
33.45
 
--
Lower Nazareth Commons
 
Allentown-Bethlehem-Easton
 
PA
 
 
 
2007
 
2012
 
 
90
 
96.0%
 
26.11
 
(Wegmans), (Target), Sports Authority
Mercer Square Shopping Center
 
Philadelphia-Camden-Wilmington
 
PA
 
40%
 
2005
 
1988
 
11,031
 
91
 
100.0%
 
22.54
 
Weis Markets
Newtown Square Shopping Center
 
Philadelphia-Camden-Wilmington
 
PA
 
40%
 
2005
 
1970
 
10,840
 
141
 
83.0%
 
17.71
 
Acme Markets
Stefko Boulevard Shopping Center (6)
 
Allentown-Bethlehem-Easton
 
PA
 
40%
 
2005
 
1976
 
 
134
 
96.0%
 
7.52
 
Valley Farm Market
Warwick Square Shopping Center
 
Philadelphia-Camden-Wilmington
 
PA
 
40%
 
2005
 
1999
 
9,699
 
90
 
92.5%
 
20.15
 
Giant Food

25




Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SFT
Buckwalter Village
 
Hilton Head Island-Beaufort
 
SC
 
 
 
2006
 
2006
 
 
60
 
100.0%
 
14.47
 
Publix
Merchants Village
 
Charleston-North Charleston
 
SC
 
40%
 
1997
 
1997
 
9,000
 
80
 
100.0%
 
15.37
 
Publix
Queensborough Shopping Center
 
Charleston-North Charleston
 
SC
 
50%
 
1998
 
1993
 
 
82
 
100.0%
 
10.34
 
Publix
Harpeth Village Fieldstone
 
Nashville-Davidson--Murfreesboro
 
TN
 
 
 
1997
 
1998
 
 
70
 
100.0%
 
14.38
 
Publix
Northlake Village
 
Nashville-Davidson--Murfreesboro
 
TN
 
 
 
2000
 
1988
 
 
138
 
91.0%
 
12.86
 
Kroger
Peartree Village
 
Nashville-Davidson--Murfreesboro
 
TN
 
 
 
1997
 
1997
 
6,836
 
110
 
100.0%
 
18.12
 
Harris Teeter
Alden Bridge
 
Houston-Baytown-Sugar Land
 
TX
 
20%
 
2002
 
1998
 
12,870
 
139
 
100.0%
 
19.28
 
Kroger
Bethany Park Place
 
Dallas-Fort Worth-Arlington
 
TX
 
20%
 
1998
 
1998
 
5,745
 
99
 
100.0%
 
11.54
 
Kroger
CityLine Market (7)
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
2014
 
2014
 
 
80
 
97.6%
 
25.14
 
Whole Foods
CityLine Market Phase II (7)
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
2014
 
2015
 
 
22
 
100.0%
 
25.88
 
--
Cochran's Crossing
 
Houston-Baytown-Sugar Land
 
TX
 
 
 
2002
 
1994
 
 
138
 
96.4%
 
17.66
 
Kroger
Hancock
 
Austin-Round Rock
 
TX
 
 
 
1999
 
1998
 
 
410
 
97.0%
 
14.35
 
H.E.B., Sears
Hickory Creek Plaza
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
2006
 
2006
 
 
28
 
100.0%
 
25.18
 
(Kroger)
Hillcrest Village
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
1999
 
1991
 
 
15
 
100.0%
 
44.40
 
--
Indian Springs Center
 
Houston-Baytown-Sugar Land
 
TX
 
 
 
2002
 
2003
 
 
137
 
100.0%
 
23.19
 
H.E.B.
Keller Town Center
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
1999
 
2014
 
 
120
 
96.9%
 
15.12
 
Tom Thumb
Lebanon/Legacy Center
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
2000
 
2002
 
 
56
 
97.3%
 
23.40
 
(Wal-Mart)
Market at Preston Forest
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
1999
 
1990
 
 
96
 
100.0%
 
20.19
 
Tom Thumb
Market at Round Rock
 
Austin-Round Rock
 
TX
 
 
 
1999
 
1987
 
 
123
 
100.0%
 
16.82
 
Sprout's Markets
Mockingbird Common
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
1999
 
1987
 
10,300
 
120
 
93.3%
 
17.67
 
Tom Thumb
North Hills
 
Austin-Round Rock
 
TX
 
 
 
1999
 
1995
 
 
144
 
97.9%
 
21.69
 
H.E.B.
Panther Creek
 
Houston-Baytown-Sugar Land
 
TX
 
 
 
2002
 
1994
 
 
166
 
99.4%
 
18.63
 
Randall's Food
Prestonbrook
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
1998
 
1998
 
6,800
 
92
 
100.0%
 
13.89
 
Kroger
Preston Oaks (6)
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
2013
 
1991
 
 
104
 
94.8%
 
30.39
 
H.E.B. Central Market
Shiloh Springs
 
Dallas-Fort Worth-Arlington
 
TX
 
20%
 
1998
 
1998
 
6,855
 
110
 
94.1%
 
14.38
 
Kroger
Shops at Mira Vista
 
Austin-Round Rock
 
TX
 
 
 
2014
 
2002
 
250
 
68
 
100.0%
 
20.62
 
Trader Joe's
Signature Plaza
 
Dallas-Fort Worth-Arlington
 
TX
 
 
 
2003
 
2004
 
 
32
 
90.1%
 
20.78
 
(Kroger)
Southpark at Cinco Ranch
 
Houston-Baytown-Sugar Land
 
TX
 
 
 
2012
 
2015
 
 
265
 
97.9%
 
12.62
 
Kroger, Academy Sports
Sterling Ridge
 
Houston-Baytown-Sugar Land
 
TX
 
 
 
2002
 
2000
 
13,900
 
129
 
100.0%
 
19.72
 
Kroger
Sweetwater Plaza
 
Houston-Baytown-Sugar Land
 
TX
 
20%
 
2001
 
2000
 
11,079
 
134
 
100.0%
 
16.89
 
Kroger
Tech Ridge Center
 
Austin-Round Rock
 
TX
 
 
 
2011
 
2001
 
8,741
 
187
 
96.0%
 
20.68
 
H.E.B.
Weslayan Plaza East
 
Houston-Baytown-Sugar Land
 
TX
 
40%
 
2005
 
1969
 
 
168
 
100.0%
 
16.88
 
Berings
Weslayan Plaza West
 
Houston-Baytown-Sugar Land
 
TX
 
40%
 
2005
 
1969
 
38,598
 
186
 
100.0%
 
18.50
 
Randall's Food
Westwood Village
 
Houston-Baytown-Sugar Land
 
TX
 
 
 
2006
 
2006
 
 
184
 
96.8%
 
18.25
 
(Target)
Woodway Collection
 
Houston-Baytown-Sugar Land
 
TX
 
40%
 
2005
 
2012
 
8,851
 
96
 
100.0%
 
27.32
 
Whole Foods
Ashburn Farm Market Center
 
Washington-Arlington-Alexandria
 
VA
 
 
 
2000
 
2000
 
 
92
 
100.0%
 
23.75
 
Giant Food
Ashburn Farm Village Center
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
1996
 
 
89
 
97.3%
 
14.64
 
Shoppers Food Warehouse

26




Property Name
 
(1)
CBSA
 
State
 
(2)
Owner-ship Interest
 
Year Acquired
 
Year Constructed or Last Major Renovation
 
Mortgages or Encumbrances (in 000's)
 
Gross Leasable Area
(GLA) (in 000's)
 
(3)
Percent Leased
 
(4)
Average Base Rent (Per Sq Ft)
 
(5)
Grocer(s) & Major Tenant(s) >35,000 SFT
Belmont Chase (7)
 
Washington-Arlington-Alexandria
 
VA
 
 
 
2014
 
2014
 
 
91
 
92.8%
 
28.35
 
Whole Foods
Braemar Shopping Center
 
Washington-Arlington-Alexandria
 
VA
 
25%
 
2004
 
2004
 
11,533
 
96
 
96.3%
 
21.13
 
Safeway
Centre Ridge Marketplace
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
1996
 
13,543
 
104
 
97.3%
 
17.60
 
Shoppers Food Warehouse
Culpeper Colonnade
 
Culpeper
 
VA
 
 
 
2006
 
2014
 
 
171
 
98.8%
 
15.09
 
Martin's, Dick's Sporting Goods, (Target)
Fairfax Shopping Center
 
Washington-Arlington-Alexandria
 
VA
 
 
 
2007
 
1955
 
 
76
 
83.5%
 
13.39
 
--
Festival at Manchester Lakes (6)
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
1990
 
23,297
 
169
 
99.3%
 
25.22
 
Shoppers Food Warehouse
Fox Mill Shopping Center
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
2013
 
16,267
 
103
 
100.0%
 
22.28
 
Giant Food
Gayton Crossing
 
Richmond
 
VA
 
40%
 
2005
 
1983
 
 
158
 
93.0%
 
15.06
 
Martin's, (Kroger)
Greenbriar Town Center
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
1972
 
50,494
 
340
 
98.2%
 
24.37
 
Giant Food
Hanover Village Shopping Center
 
Richmond
 
VA
 
40%
 
2005
 
1971
 
 
90
 
98.4%
 
8.40
 
Aldi
Hollymead Town Center
 
Charlottesville
 
VA
 
20%
 
2003
 
2004
 
25,000
 
154
 
94.9%
 
22.14
 
Harris Teeter, (Target)
Kamp Washington Shopping Center
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
1960
 
 
72
 
95.0%
 
37.01
 
Golfsmith
Kings Park Shopping Center (6)
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
2015
 
13,745
 
93
 
100.0%
 
27.16
 
Giant Food
Lorton Station Marketplace
 
Washington-Arlington-Alexandria
 
VA
 
20%
 
2006
 
2005
 
24,375
 
132
 
97.7%
 
21.59
 
Shoppers Food Warehouse
Saratoga Shopping Center
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
1977
 
11,126
 
113
 
100.0%
 
19.34
 
Giant Food
Shops at County Center
 
Washington-Arlington-Alexandria
 
VA
 
 
 
2005
 
2005
 
 
97
 
92.8%
 
19.99
 
Harris Teeter
Shops at Stonewall
 
Washington-Arlington-Alexandria
 
VA
 
 
 
2007
 
2014
 
 
314
 
98.7%
 
16.17
 
Wegmans, Dick's Sporting Goods
Signal Hill
 
Washington-Arlington-Alexandria
 
VA
 
20%
 
2003
 
2004
 
 
95
 
97.5%
 
21.59
 
Shoppers Food Warehouse
Town Center at Sterling Shopping Center
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
1980
 
 
187
 
91.5%
 
19.21
 
Giant Food
Village Center at Dulles
 
Washington-Arlington-Alexandria
 
VA
 
20%
 
2002
 
1991
 
41,588
 
298
 
97.2%
 
24.28
 
Shoppers Food Warehouse, Gold's Gym
Village Shopping Center
 
Richmond
 
VA
 
40%
 
2005
 
1948
 
16,016
 
111
 
100.0%
 
22.39
 
Martin's
Willston Centre I
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
1952
 
 
105
 
95.6%
 
25.09
 
--
Willston Centre II
 
Washington-Arlington-Alexandria
 
VA
 
40%
 
2005
 
2010
 
27,000
 
136
 
94.3%
 
23.69
 
Safeway, (Target)
Aurora Marketplace
 
Seattle-Tacoma-Bellevue
 
WA
 
40%
 
2005
 
1991
 
11,617
 
107
 
92.4%
 
15.56
 
Safeway
Broadway Market (6)
 
Seattle-Tacoma-Bellevue
 
WA
 
20%
 
2014
 
1988
 
21,500
 
140
 
98.4%
 
24.33
 
Quality Food Centers
Cascade Plaza
 
Seattle-Tacoma-Bellevue
 
WA
 
20%
 
1999
 
1999
 
14,409
 
215
 
96.0%
 
11.58
 
Haggen
Eastgate Plaza
 
Seattle-Tacoma-Bellevue
 
WA
 
40%
 
2005
 
1956
 
10,270
 
78
 
100.0%
 
23.65
 
Albertsons
Grand Ridge
 
Seattle-Tacoma-Bellevue
 
WA
 
 
 
2012
 
2012
 
11,125
 
326
 
100.0%
 
22.57
 
Safeway, Regal Cinemas
Inglewood Plaza
 
Seattle-Tacoma-Bellevue
 
WA
 
 
 
1999
 
1985
 
 
17
 
100.0%
 
35.94
 
--
Overlake Fashion Plaza (6)
 
Seattle-Tacoma-Bellevue
 
WA
 
40%
 
2005
 
1987
 
12,100
 
81
 
100.0%
 
24.47
 
(Sears)
Pine Lake Village
 
Seattle-Tacoma-Bellevue
 
WA
 
 
 
1999
 
1989
 
 
103
 
100.0%
 
22.76
 
Quality Food Centers
Sammamish-Highlands
 
Seattle-Tacoma-Bellevue
 
WA
 
 
 
1999
 
2013
 
 
101
 
100.0%
 
30.04
 
(Safeway)
Southcenter
 
Seattle-Tacoma-Bellevue
 
WA
 
 
 
1999
 
1990
 
 
58
 
86.2%
 
28.98
 
(Target)
Whitnall Square Shopping Center
 
Milwaukee-Waukesha-West Allis
 
WI
 
40%
 
2005
 
1989
 
 
133
 
92.8%
 
8.07
 
Pick 'N' Save
Regency Centers Total
 
 
 
 
 
 
 
 
 
 
 
$1,905,067
 
38,035
 
95.8%
 
 
 
 
(1) CBSA refers to Core Based Statistical Area.

27



(2) Represents our ownership interest in the property, if not wholly owned.
(3) Includes properties where we have not yet incurred at least 90% of the expected costs to complete and 95% occupied or the anchor has not yet been open for at least two calendar years ("development properties" or "properties in development"). If development properties are excluded, the total percentage leased would be 95.9% for our Combined Portfolio of shopping centers.
(4) Average base rent per SFT is calculated based on annual minimum contractual base rent per the tenant lease, excluding percentage rent and recovery revenue.
(5) A retailer that supports our shopping center and in which we have no ownership is indicated by parentheses.
(6) The ground underlying the building and improvements are not owned by Regency or its unconsolidated real estate partnerships, but is subject to a ground lease.
(7) Property in development.


28



Item 3.    Legal Proceedings

We are a party to various legal proceedings that arise in the ordinary course of our business. We are not currently involved in any litigation nor to our knowledge, is any litigation threatened against us, the outcome of which would, in our judgment based on information currently available to us, have a material adverse effect on our financial position or results of operations.

Item 4.    Mine Safety Disclosures
    
None.


PART II

Item 5.
Market for the Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities

Our common stock is traded on the New York Stock Exchange under the symbol "REG." The following table sets forth the high and low sales prices and the cash dividends declared on our common stock by quarter for 2015 and 2014.

 
 
2015
 
2014
Quarter Ended
 
High Price
 
Low Price
 
Cash Dividends Declared
 
High Price
 
Low Price
 
Cash Dividends Declared
March 31
 
$
70.80

 
63.38

 
0.4850

 
$
51.49

 
45.41

 
0.4700

June 30
 
69.45

 
58.81

 
0.4850

 
56.11

 
50.55

 
0.4700

September 30
 
64.79

 
55.79

 
0.4850

 
57.99

 
53.28

 
0.4700

December 31
 
69.45

 
61.71

 
0.4850

 
65.72

 
53.55

 
0.4700


We have determined that the dividends paid during 2015 and 2014 on our common stock qualify for the following tax treatment:
 
 
Total Distribution per Share
 
Ordinary Dividends
 
Total Capital Gain Distributions
 
Nontaxable Distributions
 
Qualified Dividends (included in Ordinary Dividends)
Unrecapt Sec 1250 Gain
2015
 
$
1.9400

 
1.4744

 
0.0970

 
0.3686

 
0.0970

0.0388

2014
 
1.8800

 
1.3160

 
0.3008

 
0.2632

 

0.0564

As of February 10, 2016, there were approximately 27,974 holders of common equity.
We intend to pay regular quarterly distributions to Regency Centers Corporation's common stockholders. Future distributions will be declared and paid at the discretion of our Board of Directors and will depend upon cash generated by operating activities, our financial condition, capital requirements, annual dividend requirements under the REIT provisions of the Internal Revenue Code of 1986, as amended, and such other factors as our Board of Directors deems relevant. In order to maintain Regency Centers Corporation's qualification as a REIT for federal income tax purposes, we are generally required to make annual distributions at least equal to 90% of our real estate investment trust taxable income for the taxable year. Under certain circumstances, which we do not expect to occur, we could be required to make distributions in excess of cash available for distributions in order to meet such requirements. We have a dividend reinvestment plan under which shareholders may elect to reinvest their dividends automatically in common stock. Under the plan, we may elect to purchase common stock in the open market on behalf of shareholders or may issue new common stock to such stockholders.
 
Under the loan agreement of our line of credit, in the event of any monetary default, we may not make distributions to stockholders except to the extent necessary to maintain our REIT status.

There were no unregistered sales of equity securities, and we did not repurchase any of our equity securities during the quarter ended December 31, 2015.



29



The performance graph furnished below shows Regency's cumulative total stockholder return to the S&P 500 Index, the FTSE NAREIT Equity REIT Index, and the FTSE NAREIT Equity Shopping Centers index since December 31, 2010. The stock performance graph should not be deemed filed or incorporated by reference into any other filing made by us under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that we specifically incorporate the stock performance graph by reference in another filing.


 
 
12/10
12/11
12/12
12/13
12/14
12/15
 
 
 
 
 
 
 
 
Regency Centers Corporation
 
$
100.00

93.15

121.45

123.64

176.24

193.90

S&P 500
 
100.00

102.11

118.45

156.82

178.29

180.75

FTSE NAREIT Equity REITs
 
100.00

108.29

127.85

131.01

170.49

175.94

FTSE NAREIT Equity Shopping Centers
 
100.00

99.27

124.11

130.31

169.35

177.34





30



Item 6.    Selected Financial Data
(in thousands, except per share and unit data, number of properties, and ratio of earnings to fixed charges)

The following table sets forth Selected Financial Data for the Company on a historical basis for the five years ended December 31, 2015 (in thousands, except per share and unit data, number of properties, and ratio of earnings to fixed charges). This historical Selected Financial Data has been derived from the audited consolidated financial statements. This information should be read in conjunction with the consolidated financial statements of Regency Centers Corporation and Regency Centers, L.P. (including the related notes thereto) and Management's Discussion and Analysis of the Financial Condition and Results of Operations, each included elsewhere in this Form 10-K.

Parent Company
 
 
2015
 
2014
 
2013
 
2012
 
2011
Operating data:
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
569,763

 
537,898

 
489,007

 
473,929

 
470,449

Operating expenses
 
365,098

 
353,348

 
324,687

 
307,493

 
303,976

Total other expense (income)
 
110,236

 
83,046

(1) 
111,741

 
131,240

 
136,317

Income from operations before equity in income of investments in real estate partnerships
 
94,429

 
101,504

 
52,579

 
35,196

 
30,156

Equity in income of investments in real estate partnerships
 
22,508

 
31,270

 
31,718

 
23,807

 
9,643

Income tax (benefit) expense of taxable REIT subsidiary
 

 
(996
)
 

 
13,224

 
2,994

Income from continuing operations
 
116,937

 
133,770

 
84,297

 
45,779

 
36,805

Income (loss) from discontinued operations (2)
 

 

 
65,285

 
(21,728
)
 
16,579

Gain on sale of real estate
 
35,606

 
55,077

 
1,703

 
2,158

 
2,404

Net income
 
152,543

 
188,847

 
151,285

 
26,209

 
55,788

Income attributable to noncontrolling interests
 
(2,487
)
 
(1,457
)
 
(1,481
)
 
(342
)
 
(4,418
)
Net income attributable to the Company
 
150,056

 
187,390

 
149,804

 
25,867

 
51,370

Preferred stock dividends
 
(21,062
)
 
(21,062
)
 
(21,062
)
 
(32,531
)
 
(19,675
)
Net income (loss) attributable to common stockholders
 
$
128,994

 
166,328

 
128,742

 
(6,664
)
 
31,695

 
 
 
 
 
 
 
 
 
 
 
NAREIT FFO (3)
 
276,515

 
269,149

 
240,621

 
222,100

 
220,318

Core FFO (3)
 
288,872

 
261,506

 
241,619

 
230,937

 
213,148

Income per common share - diluted (note 15):
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
$
1.36

 
1.80

 
0.69

 
0.16

 
0.16

Discontinued operations (2)
 

 

 
0.71

 
(0.24
)
 
0.19

Net income attributable to common stockholders
 
$
1.36

 
1.80

 
1.40

 
(0.08
)
 
0.35

Other information:
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
 
$
275,637

 
277,742

 
250,731

 
257,215

 
217,633

Net cash used in investing activities
 
(139,346
)
 
(210,290
)
 
(9,817
)
 
3,623

 
(77,723
)
Net cash used in financing activities
 
(213,211
)
 
(34,360
)
 
(182,579
)
 
(249,891
)
 
(145,569
)
Dividends paid to common stockholders
 
181,691

 
172,900

 
168,095

 
164,747

 
160,479

Common dividends declared per share
 
1.94

 
1.88

 
1.85

 
1.85

 
1.85

Common stock outstanding including exchangeable operating partnership units
 
97,367

 
94,262

 
92,499

 
90,572

 
90,099

Ratio of earnings to fixed charges (4)
 
2.5

 
2.6

 
1.8

 
1.6

 
1.5

Ratio of earnings to combined fixed charges and preference dividends (4)
 
2.1

 
2.2

 
1.5

 
1.4

 
1.3

 
 
 
 
 
 
 
 
 
 
 
Balance sheet data:
 
 
 
 
 
 
 
 
 
 
Real estate investments before accumulated depreciation
 
$
4,852,106

 
4,743,053

 
4,385,380

 
4,352,839

 
4,488,794

Total assets
 
4,191,074

 
4,197,170

 
3,913,516

 
3,853,458

 
3,987,071

Total debt
 
1,872,478

 
2,021,357

 
1,854,697

 
1,941,891

 
1,982,440

Total liabilities
 
2,108,454

 
2,260,688

 
2,052,382

 
2,107,547

 
2,117,417

Total stockholders’ equity
 
2,054,109

 
1,906,592

 
1,843,354

 
1,730,765

 
1,808,355

Total noncontrolling interests
 
28,511

 
29,890

 
17,780

 
15,146

 
61,299

(1) During the year ended December 31, 2014, the Company recognized a gain on remeasurement of investment in real estate partnership of $18.3 million, which is included in Total other expense (income) and Income from operations, upon the acquisition of the remaining 50% interest in a single operating property, resulting in consolidation of the property as a business combination. The gain on remeasurement was calculated based on the difference between the carrying value and the fair value of the previously held equity interest.
(2) On January 1, 2014, the Company prospectively adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the requirements for reporting discontinued operations. Under the new guidance, only disposals representing a strategic shift in

31



operations should be presented as discontinued operations. No property disposals since adoption of this ASU qualify as discontinued operations, therefore prior period amounts were not reclassified for property sales since adoption.
(3) See Item 1, Defined Terms, for the definition of NAREIT FFO and Core FFO and Item 7, Supplemental Earnings Information, for a reconciliation to the nearest GAAP measure.
(4) See Exhibit 12.1 for additional information regarding the computations of ratio of earnings to fixed charges and ratio of earnings to combined fixed charges and preference dividends.


32



Operating Partnership
 
 
2015
 
2014
 
2013
 
2012
 
2011
Operating data:
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
569,763

 
537,898

 
489,007

 
473,929

 
470,449

Operating expenses
 
365,098

 
353,348

 
324,687

 
307,493

 
303,976

Total other expense (income)
 
110,236

 
83,046

(1) 
111,741

 
131,240

 
136,317

Income from operations before equity in income of investments in real estate partnerships
 
94,429

 
101,504

 
52,579

 
35,196

 
30,156

Equity in income of investments in real estate partnerships
 
22,508

 
31,270

 
31,718

 
23,807

 
9,643

Income tax (benefit) expense of taxable REIT subsidiary
 

 
(996
)
 

 
13,224

 
2,994

Income from continuing operations
 
116,937

 
133,770

 
84,297

 
45,779

 
36,805

Income (loss) from discontinued operations (2)
 

 

 
65,285

 
(21,728
)
 
16,579

Gain on sale of real estate
 
35,606

 
55,077

 
1,703

 
2,158

 
2,404

Net income
 
152,543

 
188,847

 
151,285

 
26,209

 
55,788

Income attributable to noncontrolling interests
 
(2,247
)
 
(1,138
)
 
(1,205
)
 
(865
)
 
(590
)
Net income attributable to the Partnership
 
150,296

 
187,709

 
150,080

 
25,344

 
55,198

Preferred unit distributions
 
(21,062
)
 
(21,062
)
 
(21,062
)
 
(31,902
)
 
(23,400
)
Net income (loss) attributable to common unit holders
 
$
129,234

 
166,647

 
129,018

 
(6,558
)
 
31,798

 
 
 
 
 
 
 
 
 
 
 
NAREIT FFO (3)
 
276,515

 
269,149

 
240,621

 
222,100

 
220,318

Core FFO (3)
 
288,872

 
261,506

 
241,619

 
230,937

 
213,148

Income per common unit - diluted (note 15):
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
$
1.36

 
1.80

 
0.69

 
0.16

 
0.16

Discontinued operations (2)
 

 

 
0.71

 
(0.24
)
 
0.19

Net income (loss) attributable to common unit holders
 
$
1.36

 
1.80

 
1.40

 
(0.08
)
 
0.35

 
 
 
 
 
 
 
 
 
 
 
Other information:
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
 
$
275,637

 
277,742

 
250,731

 
257,215

 
217,633

Net cash used in investing activities
 
(139,346
)
 
(210,290
)
 
(9,817
)
 
3,623

 
(77,723
)
Net cash used in financing activities
 
(213,211
)
 
(34,360
)
 
(182,579
)
 
(249,891
)
 
(145,569
)
Distributions paid on common units
 
181,691

 
172,900

 
168,095

 
164,747

 
160,479

Ratio of earnings to fixed charges (4)
 
2.5

 
2.6

 
1.8

 
1.6

 
1.5

Ratio of combined fixed charges and preference dividends to earnings (4)
 
2.1

 
2.2

 
1.5

 
1.4

 
1.3

 
 
 
 
 
 
 
 
 
 
 
Balance sheet data:
 
 
 
 
 
 
 
 
 
 
Real estate investments before accumulated depreciation
 
$
4,852,106

 
4,743,053

 
4,385,380

 
4,352,839

 
4,488,794

Total assets
 
4,191,074

 
4,197,170

 
3,913,516

 
3,853,458

 
3,987,071

Total debt
 
1,872,478

 
2,021,357

 
1,854,697

 
1,941,891

 
1,982,440

Total liabilities
 
2,108,454

 
2,260,688

 
2,052,382

 
2,107,547

 
2,117,417

Total partners’ capital
 
2,052,134

 
1,904,678

 
1,841,928

 
1,729,612

 
1,856,550

Total noncontrolling interests
 
30,486

 
31,804

 
19,206

 
16,299

 
13,104

        
(1) During the year ended December 31, 2014, the Company recognized a gain on remeasurement of investment in real estate partnership of $18.3 million, which is included in Total other expense (income) and Income from operations, upon the acquisition of the remaining 50% interest in a single operating property, resulting in consolidation of the property as a business combination. The gain on remeasurement was calculated based on the difference between the carrying value and the fair value of the previously held equity interest.
(2) On January 1, 2014, the Company prospectively adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the requirements for reporting discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. No property disposals since adoption of this ASU qualify as discontinued operations, therefore prior period amounts were not reclassified for property sales since adoption.
(3) See Item 1, Defined Terms, for the definition of NAREIT FFO and Core FFO and Item 7, Supplemental Earnings Information, for a reconciliation to the nearest GAAP measure.
(4) See Exhibit 12.1 for additional information regarding the computations of ratio of earnings to fixed charges and ratio of earnings to combined fixed charges and preference dividends.

   

33




Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Executing on our Strategy

During 2015, we executed on our strategic objectives to further solidify Regency’s position as a leader among shopping center REITs:
Sustain average annual 3% NOI growth from a high-quality, growing portfolio of thriving community and neighborhood shopping centers.
We earn revenues and generate cash flow by leasing space in our shopping centers to grocery stores, major retail anchors, restaurants, side-shop retailers, and service providers, as well as ground leasing or selling out-parcels to these same types of tenants. We experience growth in revenues by increasing occupancy and rental rates in our existing shopping centers, by acquiring and developing new shopping centers, and by redeveloping shopping centers within our portfolio. Noteworthy milestones and achievements during 2015 include:
We achieved pro-rata same property NOI growth, excluding termination fees, of 4.4% in 2015, marking four consecutive years of 4% growth.
We maintained our pro-rata same property percent leased at 95.8% at December 31, 2015 and 2014.
We grew rental rates 9.6% on comparable spaces for new and renewal leases.
We cost effectively invested in the acquisition of one operating property and funded the purchase with $50 million from the sale of a center with a similar cap rate but a lower growth opportunity and greater anchor risk.

Develop new, high quality shopping centers and redevelop existing centers at attractive returns on investment from a disciplined development program.
We capitalize on our development capabilities, market presence, and anchor relationships by investing in new developments and redevelopments of existing centers.
During 2015, we started $116.7 million of development and redevelopment projects with a weighted average estimated yield of 7.5%.
As of December 31, 2015, we have seven ground-up developments in process, with total expected net development costs of $163.9 million with projected return on capital of 7.7%, and are currently 83% leased. We also have thirteen redevelopments of existing centers in process with total expected net redevelopment costs of $81.8 million and incremental yields ranging from 7.0% - 10.0%.

Cost-effectively enhance our already strong balance sheet to reduce our cost of capital, provide financial flexibility and weather economic downturns.
We fund acquisitions and development activities from various capital sources including operating cash flow, property sales through a disciplined match-funding strategy of selling low growth assets, equity offerings, new debt financing, and capital from our co-investment partners.
We managed our balance sheet to improve our debt maturity profile by refinancing and reducing our unsecured borrowings, thereby leveling our maturities to better withstand downturns in the financial markets and efficiently fund investments.
We cost effectively sold $193.6 million in common stock through our forward equity offering in January. Net proceeds of $186.2 million were received in November upon settlement and used a portion to improve our debt maturity profile. In addition, we issued 189,200 shares through our ATM program resulting in net proceeds of $12.7 million.
At December 31, 2015, our net debt-to-core EBITDA ratio was 5.2x versus 5.7x at December 31, 2014. We had $36.9 million of cash and no outstanding balance on our $800.0 million line of credit.




34



Engage a talented and dedicated team that operates efficiently and is recognized as a leader in the real estate industry with respect to development and operating capabilities, customer relationships, operating and technology systems, and environmental sustainability.
We executed on our succession plan with our bench of proven and experienced executives with the promotion of Lisa Palmer to President, in addition to her existing role of Chief Financial Officer. Additionally, we promoted two Managing Directors to Executive Vice President of Operations and of Development, respectively.
We worked to increase employee engagement through a variety of employee-related initiatives.
We developed critical information platforms that provide value added decision making capabilities.


Leasing Activity and Significant Tenants

We believe our high-quality, grocery anchored shopping centers located in densely populated, desirable infill trade areas create attractive spaces for retail tenants. Improvements in the economy, combined with historically low levels of new supply and robust tenant demand, allow us to focus on merchandising of our centers to ensure the right mix of operators and unique retailers, which draws more retail customers to our centers.

Pro-rata Occupancy

For the purpose of the following disclosures of occupancy and leasing activity, anchor space is considered space greater than or equal to 10,000 SF and shop space is less than 10,000 SF. The following table summarizes pro-rata occupancy rates of our combined Consolidated and Unconsolidated shopping center portfolio:
 
 
December 31,
2015
 
December 31,
2014
% Leased – Operating
 
95.9%
 
95.9%
Anchor space
 
98.5%
 
98.8%
Shop space
 
91.7%
 
91.2%
    
The percent leased in our operating portfolio remained constant in 2015. During the fourth quarter of 2015, we successfully recaptured two anchor spaces, giving us control over the future tenant mix at these centers and the ability to improve rents. Our shop space experienced pro-rata occupancy gains of 50 basis points driven primarily by new leasing and lower than historical move-out rates.
    
Pro-rata Leasing Activity
    
The following table summarizes leasing activity, including Regency's pro-rata share of activity within the portfolio of our co-investment partnerships:
Year ended December 31, 2015
 
 
Leasing Transactions (1)
 
Square Feet ("SF") (in thousands)
 
Base Rent PSF (2)
 
Tenant Improvements PSF (2)
 
Leasing Commissions PSF (2)
New leases
 
 
 
 
 
 
 
 
 
 
Anchor space
 
15
 
295
 
$
13.81

 
$
5.28

 
$
5.14

Shop space
 
445
 
724
 
$
30.67

 
$
10.35

 
$
13.53

Total New Leases
 
460
 
1,019
 
$
25.79

 
$
8.88

 
$
11.10

Renewals
 
 
 
 
 
 
 
 
 
 
Anchor space
 
48
 
972
 
$
11.96

 
$
0.01

 
$
1.08

Shop space
 
950
 
1,497
 
$
30.33

 
$
0.64

 
$
3.92

Total Renewal Leases (1)
 
998
 
2,469
 
$
23.10

 
$
0.40

 
$
2.80

Total Leases
 
1,458
 
3,488
 
$
23.88

 
$
2.87

 
$
5.23


35



Year ended December 31, 2014
 
 
Leasing Transactions (1)
 
SF (in thousands)
 
Base Rent PSF (2)
 
Tenant Improvements PSF (2)
 
Leasing Commissions PSF (2)
New leases
 
 
 
 
 
 
 
 
 
 
Anchor space
 
28
 
793
 
$
14.49

 
$
5.54

 
$
4.62

Shop space
 
477
 
828
 
$
29.24

 
$
8.76

 
$
13.72

Total New Leases
 
505
 
1,621
 
$
22.02

 
$
7.19

 
$
9.27

Renewals
 
 
 
 
 
 
 
 
 
 
Anchor space
 
59
 
1,173
 
$
11.80

 
$
0.20

 
$
1.07

Shop space
 
854
 
1,281
 
$
28.80

 
$
0.76

 
$
3.61

Total Renewal Leases (1)
 
913
 
2,454
 
$
20.67

 
$
0.49

 
$
2.39

Total Leases
 
1,418
 
4,075
 
$
21.21

 
$
3.16

 
$
5.13

(1) Number of leasing transactions reported at 100%; all other statistics reported at pro-rata share.
(2) Totals for base rent, tenant improvements, and leasing commissions reflect the weighted average per square foot ("PSF").

Overall, leasing activity continues to be strong. In the shop space category for both new leases and renewals, base rent PSF continued to increase on leases executed in 2015. In the anchor category, base rent PSF on new leases decreased slightly due to the geographic location of anchor deals in 2015 as compared to 2014.


Significant Tenants and Concentrations of Risk

We seek to reduce our operating and leasing risks through geographic diversification and by avoiding dependence on any single property, market, or tenant. The following table summarizes our three most significant tenants, each of which is a grocery tenant, occupying our shopping centers: 
 
 
December 31, 2015
Grocery Anchor
 
Number of
Stores (1)
 
Percentage of
Company
Owned GLA (2)
 
Percentage of
Annualized
Base Rent (2) 
Kroger
 
58
 
8.8%
 
4.7%
Publix
 
46
 
6.5%
 
3.7%
Albertsons/Safeway
 
49
 
4.8%
 
2.9%
(1) Includes stores owned by grocery anchors that are attached to our centers.
(2) Includes our pro-rata share of Unconsolidated Properties and excludes those owned by anchors.

Bankruptcies

Although base rent is supported by long-term lease contracts, tenants who file bankruptcy may have the legal right to reject any or all of their leases and close related stores. In the event that a tenant with a significant number of leases in our shopping centers files bankruptcy and cancels its leases, we could experience a significant reduction in our revenues. We monitor the operating performance and rent collections of all tenants in our shopping centers, especially those tenants operating retail formats that are experiencing significant changes in competition, business practice, and store closings in other locations. We are not currently aware of the pending bankruptcy or announced store closings of any tenants in our shopping centers that would individually cause a material reduction in our revenues, and no tenant represents more than 5% of our annual base rent on a pro-rata basis.

Our management team devotes significant time to monitoring consumer preferences, shopping behaviors, and demographics to anticipate both challenges and opportunities in the changing retail industry that may affect our tenants. As a result of our findings, we may reduce new leasing, suspend leasing, or curtail the allowance for the construction of leasehold improvements within a certain retail category or to a specific retailer.


36



Results from Operations

Comparison of the years ended December 31, 2015 and 2014:

Our revenues increased as summarized in the following table: 
(in thousands)
 
2015
 
2014
 
Change
Minimum rent
 
$
415,155

 
390,697

 
24,458

Percentage rent
 
3,750

 
3,488

 
262

Recoveries from tenants
 
116,120

 
108,434

 
7,686

Other income
 
9,175

 
11,184

 
(2,009
)
Management, transaction, and other fees
 
25,563

 
24,095

 
1,468

Total revenues
 
$
569,763

 
537,898

 
31,865


Minimum rent increased as follows:

$5.0 million increase due to the acquisitions of operating properties;

$9.8 million increase from operations beginning at development properties; and

$15.7 million increase in minimum rent from same properties, with $6.7 million relating to redevelopment properties, and $9.0 million relating to higher rental rates and rent paying occupancy growth;

reduced by $6.0 million from the sale of operating properties.
    
Recoveries from tenants represent reimbursements to us for tenants' pro-rata share of the operating, maintenance, and
real estate tax expenses that we incur to operate our shopping centers. Recoveries from tenants increased as follows:

$1.2 million increase due to the acquisition of operating properties;

$1.5 million increase from operations beginning at development properties; and,

$5.9 million increase from same properties associated with rent paying occupancy improvements and higher recoverable costs;

reduced by approximately $890,000 from the sale of operating properties.

Other income, which consists of incidental income earned at our centers, decreased primarily as a result of a higher level of settlement and lease termination income earned in 2014.

We earn fees, at market-based rates, for asset management, property management, leasing, acquisition, and financing services that we provided to our co-investment partnerships and third parties as follows:
    
(in thousands)
 
2015
 
2014
 
Change
Asset management fees
 
$
6,416

 
6,013

 
403

Property management fees
 
13,123

 
13,020

 
103

Leasing commissions and other fees
 
6,024

 
5,062

 
962

Total management, transaction, and other fees
 
$
25,563

 
24,095

 
1,468

    
    
Asset and property management fees increased due to higher property values and revenues in our co-investment partnerships. Leasing commissions and other fees increased during 2015 due to the higher average rents on leasing transactions.
        





37





Changes in our operating expenses are summarized in the following table: 
(in thousands)
 
2015
 
2014
 
Change
Depreciation and amortization
 
$
146,829

 
147,791

 
(962
)
Operating and maintenance
 
82,978

 
77,788

 
5,190

General and administrative
 
65,600

 
60,242

 
5,358

Real estate taxes
 
61,855

 
59,031

 
2,824

Other operating expenses
 
7,836

 
8,496

 
(660
)
Total operating expenses
 
$
365,098

 
353,348

 
11,750


Depreciation and amortization decreased as follows:

$2.9 million decrease from the sale of operating properties;

$1.9 million increase primarily from operations beginning at development properties and acquisition of operating properties.

Operating and maintenance costs increased as follows:

$1.6 million increase from operations beginning at development properties;

$2.9 million increase at same properties primarily driven by increases in property management fees, landscaping, and parking lot maintenance costs;

$2.1 million increase relating to acquisition of operating properties;

reduced by $1.4 million from the sale of operating properties.

General and administrative expenses increased as follows:

$3.9 million of higher compensation costs, including $2.2 million associated with executive management changes at December 31, 2015;

$2.3 million of lower development overhead capitalization based on fewer new development and redevelopment projects started in 2015;

reduced by $1.1 million from the decrease in the value of participant obligations within the deferred compensation plan.

Real estate taxes increased as follows:

$690,000 increase from acquisition of operating properties;

$510,000 increase relating to operations beginning at development properties; and,

$2.0 million increase at same properties from increased tax assessments;

reduced by approximately $360,000 from the sale of operating properties.











38



    
The following table presents the components of other expense (income):
(in thousands)
 
2015
 
2014
 
Change
Interest expense, net
 
 
 
 
 
 
Interest on notes payable
 
$
98,485

 
104,938

 
(6,453
)
Interest on unsecured credit facilities
 
3,566

 
3,539

 
27

Capitalized interest
 
(6,739
)
 
(7,142
)
 
403

Hedge expense
 
8,900

 
9,366

 
(466
)
Interest income
 
(1,590
)
 
(1,210
)
 
(380
)
Interest expense, net
 
102,622

 
109,491

 
(6,869
)
Provision for impairment
 

 
1,257

 
(1,257
)
Early extinguishment of debt
 
8,239

 
18

 
8,221

Net investment (income) loss
 
(625
)
 
(9,449
)
 
8,824

Gain on remeasurement of investment in real estate partnership
 

 
(18,271
)
 
18,271

Total other expense (income)
 
$
110,236

 
83,046

 
27,190


The $6.9 million decrease in interest expense, net is mainly due to lower interest rates from refinancing our long-term debt during 2014 and 2015 and lower outstanding balances on notes payable.

We did not recognize impairment losses during 2015. During the year ended December 31, 2014, we recognized a $1.1 million loss on the disposal of one operating property and one land parcel and a $175,000 impairment on two parcels of land held.

During November 2015, we incurred an $8.2 million charge from a make-whole premium on our $100.0 million early redemption of the $400.0 million outstanding 5.875% senior unsecured notes that are due in 2017.

Net investment income decreased $8.8 million, largely driven by an $8.1 million gain realized on the sale of available-for-sale securities in 2014 and a $1.1 million decrease in the fair value of plan assets in the non-qualified deferred compensation plan during 2015, which is consistent with the change in plan liabilities included in general and administrative expenses above.

During the year ended December 31, 2014, we acquired the remaining 50% interest and gained control of a previously unconsolidated investment in a real estate partnership that owns a single operating property. As the operating property constitutes a business, acquisition of control was accounted for as a step acquisition, and the net assets acquired were recognized at fair value. The gain of $18.3 million was recognized as the difference between the fair value and carrying value of the Company's previously held equity interest, using an income approach to measure fair value.



39




Our equity in income of investments in real estate partnerships increased (decreased) as follows: 
(in thousands)
 
Regency's Ownership
 
2015
 
2014
 
Change
GRI - Regency, LLC (GRIR)
 
40.00%
 
$
18,148

 
13,727

 
4,421

Columbia Regency Retail Partners, LLC (Columbia I)
 
20.00%
 
(278
)
 
1,431

 
(1,709
)
Columbia Regency Partners II, LLC (Columbia II)
 
20.00%
 
755

 
233

 
522

Cameron Village, LLC (Cameron)
 
30.00%
 
643

 
1,008

 
(365
)
RegCal, LLC (RegCal)
 
25.00%
 
576

 
966

 
(390
)
US Regency Retail I, LLC (USAA)
 
20.01%
 
807

 
567

 
240

Other investments in real estate partnerships
 
50.00%
 
1,857

 
13,338

 
(11,481
)
Total equity in income of investments in real estate partnerships
 
 
 
$
22,508

 
31,270

 
(8,762
)

The $8.8 million net decrease is largely attributed to:
GRIR: $4.4 million increase driven by:
$1.3 million increase in base rent from occupancy and rental rate growth,
$1.8 million decrease in depreciation due to higher depreciation expense in 2014 relating to redevelopment activity,
Reduced interest expense roughly $800,000 by paying off or refinancing property debt at better rates in 2014 and 2015.
Columbia I: $1.8 million decrease from impairment loss upon the sale of one operating property during 2015;
Columbia II: $424,000 increase due to impairment losses recognized upon the sale of two properties during 2014; and
Other investments in real estate partnerships: $11.4 million decrease within our other investment partnerships driven by the $10.9 million gains on the sale of two land parcels and two operating properties during 2014.


40




The following represents the remaining components that comprise net income attributable to the common stockholders and unit holders:
(in thousands)
 
2015
 
2014
 
Change
Income from continuing operations before tax
 
$
116,937

 
132,774

 
(15,837
)
Income tax (benefit) of taxable REIT subsidiary
 

 
(996
)
 
996

Gain on sale of real estate
 
35,606

 
55,077

 
(19,471
)
Income attributable to noncontrolling interests
 
(2,487
)
 
(1,457
)
 
(1,030
)
Preferred stock dividends
 
(21,062
)
 
(21,062
)
 

Net income attributable to common stockholders
 
$
128,994

 
166,328

 
(37,334
)
Net income attributable to exchangeable operating partnership units
 
240

 
319

 
(79
)
Net income attributable to common unit holders
 
$
129,234

 
166,647

 
(37,413
)

A $1.0 million tax benefit was recognized in 2014 upon the receipt of a state tax refund from amending our prior tax returns.

We recognized $35.6 million of gains on the sale of real estate, net of taxes, in 2015 attributable to the sale of five operating properties and two land parcels as compared to $55.1 million of gains on the sale of real estate, net of taxes, in 2014 attributable to the sale of eleven operating properties and six land parcels.

Income attributable to noncontrolling interests increased $1.0 million due to to the 2014 acquisition of a portfolio held within a consolidated partnership, coupled with new operating activity from a development beginning operations and a recent redevelopment completion within our consolidated partnerships.
 

Comparison of the years ended December 31, 2014 and 2013:

Our revenues increased as summarized in the following table: 
(in thousands)
 
2014
 
2013
 
Change
Minimum rent
 
$
390,697

 
353,833

 
36,864

Percentage rent
 
3,488

 
3,583

 
(95
)
Recoveries from tenants
 
108,434

 
95,902

 
12,532

Other income
 
11,184

 
10,592

 
592

Management, transaction, and other fees
 
24,095

 
25,097

 
(1,002
)
Total revenues
 
$
537,898

 
489,007

 
48,891


Minimum rent increased as follows:
   
$16.8 million increase due to the acquisitions of operating properties;

$12.3 million increase from operations beginning at development properties; and

$9.9 million increase in minimum rent from same properties, with $4.4 million relating to redevelopment properties, and $5.5 million relating to higher rental rates and rent paying occupancy growth;

reduced by a $2.2 million decrease from the sale of operating properties.

Recoveries from tenants represent reimbursements to us for tenants' pro-rata share of the operating, maintenance, and
real estate tax expenses that we incur to operate our shopping centers. Recoveries from tenants increased as follows:

$3.8 million increase due to the acquisition of operating properties;

$3.5 million increase from operations beginning at development properties during 2014 and 2013; and,


41



$6.2 million increase in recoveries at same properties, which was driven by an increase in occupancy and recoverable costs;

reduced by $1.0 million decrease from the sale of operating properties.

Other income, which consists of incidental income earned at our centers, increased primarily as a result of settlement and lease termination fee income earned in 2014.

We earn fees, at market-based rates, for asset management, property management, leasing, acquisition, and financing services that we provided to our co-investment partnerships and third parties as follows: 
(in thousands)
 
2014
 
2013
 
Change
Asset management fees
 
$
6,013

 
6,205

 
(192
)
Property management fees
 
13,020

 
13,692

 
(672
)
Leasing commissions and other fees
 
5,062

 
5,200

 
(138
)
Total management, transaction, and other fees
 
$
24,095

 
25,097

 
(1,002
)

Asset and property management fees decreased due to the liquidation of one unconsolidated real estate partnership consisting of nine properties during the third quarter of 2013.

Changes in our operating expenses are summarized in the following table:  
(in thousands)
 
2014
 
2013
 
Change
Depreciation and amortization
 
$
147,791

 
130,630

 
17,161

Operating and maintenance
 
77,788

 
71,018

 
6,770

General and administrative
 
60,242

 
61,234

 
(992
)
Real estate taxes
 
59,031

 
53,726

 
5,305

Other operating expenses
 
8,496

 
8,079

 
417

Total operating expenses
 
$
353,348

 
324,687

 
28,661

    
Depreciation and amortization increased as follows:

$9.9 million increase from the acquisition of operating properties;

$5.5 million increase from operations beginning at development properties; and,

$2.6 million increase at same properties, attributable to redevelopments and recent capital improvements being depreciated;

reduced by $800,000 from the sale of operating properties.

Operating and maintenance costs increased as follows:

$2.6 million increase from operations beginning at development properties;

$2.4 million increase at same properties, attributable to an increase in snow removal costs; and,

$2.0 million increase relating to the acquisition of operating properties;

reduced by approximately $200,000 from the sale of operating properties.

General and administrative expenses decreased approximately $1.0 million largely due to greater capitalization of development overhead costs by $4.4 million, stemming from higher volume of development projects, offset by an increase of $4.6 million of higher incentive compensation expense during 2014. Additionally, changes in participant obligations within the deferred compensation plan resulted in a $1.9 million decrease in expense.

Real estate taxes increased as follows:

$2.6 million increase from the acquisition of operating properties;

42




$1.6 million increase relating to operations beginning at development properties; and,

$1.4 million increase at same properties from increased tax assessments;

reduced by approximately $300,000 from the sale of operating properties.

The following table presents the components of other expense (income):
(in thousands)
 
2014
 
2013
 
Change
Interest expense, net
 
 
 
 
 
 
Interest on notes payable
 
104,938

 
103,143

 
1,795

Interest on unsecured credit facilities
 
3,539

 
3,937

 
(398
)
Capitalized interest
 
(7,142
)
 
(6,078
)
 
(1,064
)
Hedge expense
 
9,366

 
9,607

 
(241
)
Interest income
 
(1,210
)
 
(1,643
)
 
433

Interest expense, net
 
109,491

 
108,966

 
525

Provision for impairment
 
1,257

 
6,000

 
(4,743
)
Early extinguishment of debt
 
18

 
32

 
(14
)
Net investment (income) loss
 
(9,449
)
 
(3,257
)
 
(6,192
)
Gain on remeasurement of investment in real estate partnership
 
(18,271
)
 

 
(18,271
)
Total other expense (income)
 
$
83,046

 
111,741

 
(28,695
)

Our interest expense, net increased $525,000 mainly due to the $77.8 million of mortgage debt assumed with a portfolio acquisition in the first quarter of 2014, offset by additional capitalized interest on development projects.

During 2014, we recognized a $1.1 million of loss on the disposal of one operating property and one land parcel and a $175,000 impairment on two parcels of land held. During the year ended December 31, 2013, we recognized a $6.0 million impairment on a single operating property.

Net investment income increased $6.2 million, largely driven by an $8.1 million gain realized on the sale of available-for-sale securities offset by a $1.9 million decrease in net investment income from the deferred compensation plan relating to the change in the fair value of plan assets.

During 2014, we acquired the remaining 50% interest and gained control of a previously unconsolidated investment in a real estate partnership that owns a single operating property. As the operating property constitutes a business, acquisition of control was accounted for as a step acquisition, and the net assets acquired were recognized at fair value. The gain of $18.3 million was recognized as the difference between the fair value and carrying value of the Company's previously held equity interest, using an income approach to measure fair value.



43




Our equity in income of investments in real estate partnerships (decreased) increased as follows: 
(in thousands)
 
Regency's Ownership
 
2014
 
2013
 
Change
GRI - Regency, LLC (GRIR)
 
40.00%
 
$
13,727

 
12,789

 
938

Macquarie CountryWide-Regency III, LLC (MCWR III) (1)
 
—%
 

 
53

 
(53
)
Columbia Regency Retail Partners, LLC (Columbia I)
 
20.00%
 
1,431

 
1,727

 
(296
)
Columbia Regency Partners II, LLC (Columbia II)
 
20.00%
 
233

 
1,274

 
(1,041
)
Cameron Village, LLC (Cameron)
 
30.00%
 
1,008

 
662

 
346

RegCal, LLC (RegCal)
 
25.00%
 
966

 
332

 
634

Regency Retail Partners, LP (the Fund) (2)
 
20.00%
 
27

 
7,749

 
(7,722
)
US Regency Retail I, LLC (USAA)
 
20.01%
 
567

 
487

 
80

BRE Throne Holdings, LLC (BRET) (3)
 
—%
 

 
4,499

 
(4,499
)
Other investments in real estate partnerships
 
50.00%
 
13,311

 
2,146

 
11,165

Total equity in income of investments in real estate partnerships
 
 
 
$
31,270

 
31,718

 
(448
)
(1) As of December 31, 2012, our ownership interest in MCWR III was 24.95%. The liquidation of MCWR III was complete effective March 20, 2013.
(2) On August 13, 2013, the Fund sold 100% of its interest in its entire portfolio of shopping centers to a third party. The Fund will be dissolved following the final distribution of proceeds in 2014.
(3) On October 23, 2013, the Company sold 100% of its interest in the BRET unconsolidated real estate partnership and received a capital distribution of $47.5 million, its share of the undistributed income of the partnership, and a redemption premium. Regency no longer has any interest in the BRET partnership.

The decrease in our equity in income of investments in real estate partnerships is principally due to the following:

GRIR: $947,000 increase from gain on one operating property disposal in 2014;

Columbia II: $1.0 million decrease due to $424,000 of impairment losses recognized upon sale of two properties in 2014 compared to $830,000 of gains recognized in 2013 on the sale of four operating properties and one land parcel;
RegCal: $654,000 gain on one operating property disposal in 2014;
The Fund: All operating properties were sold in August 2013 for gains of $7.4 million. The only activity in 2014 was collection of remaining receivables and the final distribution;
BRET: $4.5 million decrease from liquidating our ownership interest in October 2013; and,
Other investments in real estate partnerships: $11.2 million increase driven by 2014 gains of $10.9 million on the sale of two land parcels and two operating properties.


    

44



The following represents the remaining components that comprise net income attributable to the common stockholders and unit holders:
(in thousands)
 
2014
 
2013
 
Change
Income from continuing operations before tax
 
$
132,774

 
84,297

 
48,477

Income tax (benefit) of taxable REIT subsidiary
 
(996
)
 

 
(996
)
Discontinued operations
 
 
 
 
 
 
Gain on sale of operating properties, net of tax
 

 
57,953

 
(57,953
)
Operating income
 

 
7,332

 
(7,332
)
(Loss) income from discontinued operations
 

 
65,285

 
(65,285
)
Gain on sale of real estate
 
55,077

 
1,703

 
53,374

Income attributable to noncontrolling interests
 
(1,457
)
 
(1,481
)
 
24

Preferred stock dividends
 
(21,062
)
 
(21,062
)
 

Net income attributable to common stockholders
 
$
166,328

 
128,742

 
37,586

Net income attributable to exchangeable operating partnership units
 
319

 
276

 
43

Net income attributable to common unit holders
 
$
166,647

 
129,018

 
37,629


A $1.0 million tax benefit was recognized in 2014 upon the receipt of a state tax refund from amending our prior tax returns. We recognized $55.1 million of gains on sale of real estate, net of taxes, in 2014 attributable to the sale of eleven operating properties and six land parcels.

We recognized a gain on sale of real estate of $55.1 million during 2014 from the sale of eleven operating properties compared to $58.0 million during 2013 from the sale of twelve operating properties.

    
Supplemental Earnings Information

We use certain non-GAAP performance measures, in addition to the required GAAP presentations, as we believe these measures are beneficial to us in improving the understanding of the Company's operational results among the investing public. We believe such measures make comparisons of other REITs' operating results to the Company's more meaningful. We continually evaluate the usefulness, relevance, and calculation of our reported non-GAAP performance measures to determine how best to provide relevant information to the public, and thus such reported measures could change.


Pro-Rata Same Property NOI:    
    
Our pro-rata same property NOI grew 4.1% from the following major components:
(in thousands)
 
2015
 
2014
 
Change
Base rent
 
$
468,085

 
451,031

 
17,054

Percentage rent
 
5,066

 
4,885

 
181

Recovery revenue
 
136,928

 
130,922

 
6,006

Other income
 
7,644

 
8,985

 
(1,341
)
Operating expenses
 
169,047

 
164,656

 
4,391

Pro-rata same property NOI (1)
 
$
448,676

 
431,167

 
17,509

(1) See the end of the Supplemental Earnings Information section for a reconciliation to the nearest GAAP measure.

Pro-rata same property base rent increased $17.1 million, driven by $5.8 million increase in contractual rent steps and $11.2 million increase in rental rate growth and changes in occupancy.

Pro-rata same property recovery revenue increased $6.0 million due to improvements in rent paying occupancy and increases in recoverable costs.

Pro-rata same property other income decreased $1.3 million during 2015 as a result of a large settlement fee earned in 2014.    

Pro-rata same property operating expenses increased $4.4 million primarily associated with increased real estate taxes, property management fees, cleaning, and landscaping costs.

Same Property Rollforward:

Our same property pool includes the following property count, pro-rata GLA, and changes therein:
 
2015
 
2014
(GLA in thousands)
Property Count
GLA
 
Property Count
GLA
Beginning same property count
298

25,526

 
304

25,109

Acquired properties owned for entirety of comparable periods
4

427

 
6

560

Developments that reached completion by beginning of earliest comparable period presented
3

790

 
5

360

Disposed properties
(5
)
(260
)
 
(17
)
(680
)
SF adjustments (1)

25

 

177

Ending same property count
300

26,508

 
298

25,526

(1) SF adjustments arise from remeasurements or redevelopments.


NAREIT FFO and Core FFO:

Our reconciliation of net income available to common shareholders to NAREIT FFO and Core FFO is as follows:
(in thousands, except share information)
 
2015
 
2014
Reconciliation of Net income to NAREIT FFO
 
 
 
 
Net income attributable to common stockholders
$
128,994

 
166,328

Adjustments to reconcile to NAREIT FFO:
 
 
 
 
Depreciation and amortization (1)
 
182,103

 
184,750

Provision for impairment (2)
 
1,820

 
983

Gain on sale of operating properties, net of tax (2)
 
(36,642
)
 
(64,960
)
Gain on remeasurement of investment in real estate partnership
 

 
(18,271
)
Exchangeable partnership units
 
240

 
319

NAREIT FFO attributable to common stockholders
$
276,515

 
269,149

Reconciliation of NAREIT FFO to Core FFO
 
 
 
 
NAREIT FFO
$
276,515

 
269,149

Adjustments to reconcile to Core FFO:
 
 
 
 
Development and acquisition pursuit costs (2)(3)
 
2,409

 
2,598

Income tax
 

 
(996
)
Gain on sale of land (2)
 
(73
)
 
(3,731
)
Provision for impairment to land (2)
 

 
699

Interest rate swap ineffectiveness (2)
 
5

 
30

Early extinguishment of debt (2)
 
8,239

 
51

Change in executive management
 
2,193

 

Gain on sale of AmREIT stock, net of costs (3)
 

 
(5,960
)
Dividends from investments
 
(416
)
 
(334
)
Core FFO attributable to common stockholders
$
288,872

 
261,506

(1) Includes Regency's pro-rata share of unconsolidated co-investment partnerships, net of pro-rata share attributable to noncontrolling interests.
(2) Includes Regency's pro-rata share of unconsolidated co-investment partnerships.
(3) 2014 development and acquisition pursuit costs exclude AmREIT, Inc. ("AmREIT") pursuit costs of $1.8 million, which are shown net with the gain on sale of AmREIT stock.



45



Reconciliation of Same Property NOI to Nearest GAAP Measure:

Our reconciliation of property revenues and property expenses to Same Property NOI, on a pro-rata basis, is as follows:
 
 
2015
 
2014
(in thousands)
 
Same Property
 
Other (1)
 
Total
 
Same Property
 
Other (1)
 
Total
Income from continuing operations
 
$
233,580

 
(116,643
)
 
116,937

 
218,753

 
(85,979
)
 
132,774

Less:
 
 
 
 
 
 
 
 
 
 
 
 
Management, transaction, and other fees
 

 
25,563

 
25,563

 

 
24,095

 
24,095

Other (2)
 
6,977

 
3,081

 
10,058

 
8,452

 
1,590

 
10,042

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
129,837

 
16,992

 
146,829

 
130,962

 
16,829

 
147,791

General and administrative
 

 
65,600

 
65,600

 

 
60,242

 
60,242

Other operating expense, excluding provision for doubtful accounts
 
536

 
4,937

 
5,473

 
933

 
5,606

 
6,539

Other expense (income)
 
26,352

 
83,884

 
110,236

 
29,661

 
53,385

 
83,046

Equity in income (loss) of investments in real estate excluded from NOI (3)
 
65,348

 
1,787

 
67,135

 
59,310

 
(1,439
)
 
57,871

Pro-rata NOI
 
$
448,676

 
27,913

 
476,589

 
431,167

 
22,959

 
454,126

(1) Includes revenues and expenses attributable to non-same property, sold property, development property, and corporate activities. 
(2) Includes straight-line rental income, net of reserves, above and below market rent amortization, banking charges, and other fees.
(3) Includes non-NOI expenses incurred at our unconsolidated real estate partnerships, including those separated out above for our consolidated properties.

46





Liquidity and Capital Resources

Our Parent Company has no capital commitments other than its guarantees of the commitments of our Operating Partnership. The Parent Company will from time to time access the capital markets for the purpose of issuing new equity and will simultaneously contribute all of the offering proceeds to the Operating Partnership in exchange for additional partnership units. All debt is issued by our Operating Partnership or by our co-investment partnerships. The following table represents the remaining available capacity under our at the market ("ATM") equity program and our unsecured credit facilities:

(in thousands)
 
December 31, 2015
ATM equity program (see note 12)
 
 
Total capacity
 
$
200,000

Remaining capacity
 
$
83,300

 
 
 
Line of Credit (the "Line") (see note 9)
 
 
Total capacity
 
$
800,000

Remaining capacity (1)
 
$
794,100

Maturity (2)
 
May 2019
(1) Net of letters of credit.
 
 
(2) The Company has the option to extend the maturity for two additional six-month periods.


The following table summarizes net cash flows related to operating, investing, and financing activities of the Company: 
(in thousands)
 
2015
 
2014
 
Change
Net cash provided by operating activities
 
$
275,637

 
277,742

 
(2,105
)
Net cash used in investing activities
 
(139,346
)
 
(210,290
)
 
70,944

Net cash used in financing activities
 
(213,211
)
 
(34,360
)
 
(178,851
)
Net (decrease) increase in cash and cash equivalents
 
(76,920
)
 
33,092

 
(110,012
)
Total cash and cash equivalents
 
$
36,856

 
113,776

 
(76,920
)

Net cash provided by operating activities:

Net cash provided by operating activities increased by $2.1 million during 2015 as compared to 2014 due to:
$18.3 million increase in cash from operating income; and
$3.9 million increase in operating cash flow distributions from our unconsolidated real estate partnerships as several redevelopment projects were completed and began distributing cash flows; reduced by,
$12.3 million net decrease in cash due to timing of cash receipts and payments related to operating activities; and
$11.9 million decrease in cash from payments to settle our treasury hedges in connection with our bond issuances. During 2015 we paid $7.3 million as compared to receiving $4.6 million in 2014 because of changes in the underlying ten year treasury rates.
We operate our business such that we expect net cash provided by operating activities will provide the necessary funds to pay our distributions to our common and preferred stock and unit holders, which were $202.8 million and $194.0 million for the years ended December 31, 2015 and 2014, respectively. Our dividend distribution policy is set by our Board of Directors who monitors our financial position. Our Board of Directors recently declared our common stock quarterly dividend of $0.500 per share, payable on March 3, 2016. Future dividends will be declared at the discretion of our Board of Directors and will be subject to capital requirements and availability. We plan to continue paying an aggregate amount of distributions to our stock and unit holders that, at a minimum, meet the requirements to continue qualifying as a REIT for federal income tax purposes.

    


47




Net cash used in investing activities:

Net cash used in investing activities decreased by $70.9 million primarily due to a decrease in shopping center acquisitions and development expenditures during 2015:
(in thousands)
 
2015
 
2014
 
Change
Cash flows from investing activities:
 
 
 
 
 
 
Acquisition of operating real estate
 
$
(42,983
)
 
(112,120
)
 
69,137

Advance deposits on acquisition of operating real estate
 
(2,250
)
 

 
(2,250
)
Real estate development and capital improvements
 
(205,103
)
 
(238,237
)
 
33,134

Proceeds from sale of real estate investments
 
108,822

 
118,787

 
(9,965
)
Collection of notes receivable
 
1,719

 

 
1,719

Investments in real estate partnerships
 
(20,054
)
 
(23,577
)
 
3,523

Distributions received from investments in real estate partnerships
 
23,801

 
37,152

 
(13,351
)
Dividends on investments
 
243

 
243

 

Acquisition of securities
 
(31,941
)
 
(23,760
)
 
(8,181
)
Proceeds from sale of securities
 
28,400

 
31,222

 
(2,822
)
Net cash used in investing activities
 
$
(139,346
)
 
(210,290
)
 
70,944

    
Significant investing and divesting activities included:

We acquired one shopping center in 2015, compared to four during 2014.

We received proceeds of $108.8 million from the sale of five shopping centers and two out-parcels in 2015, compared to $118.8 million for eleven shopping centers and six out-parcels in 2015.

We invested $20.1 million in our unconsolidated partnerships during 2015 to fund our share of maturing mortgage debt and redevelopment activities. In 2014, we invested $23.6 million to acquire an operating property and to fund redevelopment activity.

Distributions from our unconsolidated partnerships include return of capital from sales or financing proceeds. The $23.8 million received in 2015 includes $12.8 million of proceeds from the sale of one shopping center with a co-investment partner and $11.0 million of financing proceeds. Distributions in 2014 were from real estate sales proceeds of $32.1 million and $5.1 million from refinancing a loan.

Acquisition of securities and proceeds from sale of securities include investments in equity and debt securities. During 2015, we invested $7.9 million of funds held in our captive insurance subsidiary in available-for-sale marketable securities. Our insurance subsidiary is required to maintain statutory minimum capital and surplus, and therefore, our access to these securities may be limited. In 2014, we paid $14.3 million for the acquisition of AmREIT common stock, and received $22.1 million in proceeds upon the subsequent sale. The remaining activity, during both 2015 and 2014, primarily relating to our deferred compensation plan.

We plan to continue developing and redeveloping shopping centers for long-term investment purposes. We deployed capital of $205.1 million for the development, redevelopment, and improvement of our real estate properties as comprised of the following:

48



(in thousands)
 
2015
 
2014
 
Change
Capital expenditures:
 
 
 
 
 
 
Land acquisitions for development / redevelopment
 
$
5,135

 
34,650

 
(29,515
)
Building and tenant improvements
 
30,103

 
35,759

 
(5,656
)
Redevelopment costs
 
50,933

 
48,853

 
2,080

Development costs
 
100,111

 
98,367

 
1,744

Capitalized interest
 
6,740

 
7,141

 
(401
)
Capitalized direct compensation
 
12,081

 
13,467

 
(1,386
)
Real estate development and capital improvements
 
$
205,103

 
238,237

 
(33,134
)

During 2015 we acquired two land parcels for new development projects as compared to six in 2014.

Building and tenant improvements decreased $5.7 million during the year ended December 31, 2015 primarily related to timing of capital projects.

Redevelopment expenditures were higher during 2015 due to the timing, magnitude, and number of projects
currently in process. We intend to continuously improve our portfolio of shopping centers through
redevelopment which can include adjacent land acquisition, existing building expansion, new out-parcel
building construction, and tenant improvement costs. The size and scope of each redevelopment project
varies with each redevelopment plan.

The $1.7 million increase in our development project expenditures was due to the size of and progress on developments. See the table below for a detail of current and recently completed development projects.

Capitalized direct compensation represents overhead costs of our development and construction team directly related to the development projects, with the majority of capitalizable direct compensation costs incurred at or near inception of a development project. The decreased number and size of projects starting in 2015 as compared to 2014 resulted in the decrease in capitalized compensation costs. During 2015 we started $106.1 million of development and redevelopment projects as compared to $213.7 million in 2014.

We have a staff of employees who directly support our development and redevelopment program. Internal compensation costs directly attributable to these activities are capitalized as part of each project as summarized in the table above. Changes in the level of future development and redevelopment activity could adversely impact results of operations by reducing the amount of internal costs for development and redevelopment projects that may be capitalized. A 10% reduction in development and redevelopment activity without a corresponding reduction in the compensation costs directly related to our development and redevelopment activities could result in an additional charge to net income of $1.4 million per year.

As of December 31, 2015 and 2014, we had seven development projects that were either under construction or in lease up. The following table summarizes our development projects:
December 31, 2015
(in thousands, except cost PSF)
 
 
 
 
 
 
 
 
 
 
 
 
Property Name
 
Location
 
Start Date
 
Estimated Net Development Costs (1)
 
% of Costs Incurred
 
GLA
 
Cost PSF GLA (1)
 
Estimated/Actual Anchor Opens
Brooklyn Station on Riverside
 
Jacksonville, FL
 
Q4-13
 
15,070

 
84
%
 
50

 
301

 
Oct-14
Willow Oaks Crossing
 
Concord, NC
 
Q2-14
 
13,777

 
95
%
 
69

 
200

 
Dec-15
CityLine Market
 
Richardson, TX
 
Q3-14
 
27,740

 
78
%
 
80

 
347

 
Apr-16
Belmont Shopping Center
 
Ashburn, VA
 
Q3-14
 
28,286

 
88
%
 
91

 
311

 
Aug-15
The Village at La Floresta
 
Brea, CA
 
Q4-14
 
33,116

 
83
%
 
87

 
381

 
Feb-16
CityLine Market Phase II
 
Richardson, TX
 
Q4-15
 
6,172

 
43
%
 
21

 
281

 
May-16
Northgate Marketplace Phase II
 
Medford, OR
 
Q4-15
 
39,690

 
12
%
 
179

 
222

 
Nov-16
 
 
 
 
 
 
$
163,851

 
65
%
 
577

 
$
284

(2) 
 
(1) Includes leasing costs, and is net of tenant reimbursements.
(2) Amount represents a weighted average.


49



The following table summarizes our completed development projects:
December 31, 2015
(in thousands, except cost PSF)
 
 
 
 
 
 
 
 
Property Name
 
Location
 
Completion Date
 
Net Development Costs (1)
 
GLA
 
Cost PSF GLA (1)
Fountain Square
 
Miami, FL
 
6/30/2015
 
$
55,937

 
177

 
$
316

Persimmon Place
 
Dublin, CA
 
9/30/2015
 
59,976

 
153

 
392

Total
 
 
 
 
 
$
115,913

 
330

 
$
351

(1) Includes leasing costs, and is net of tenant reimbursements.

Net cash used in financing activities:
 
Net cash flows used in financing activities increased by $178.9 million during 2015 primarily from debt repayments, net of proceeds from debt and equity issuances, as follows:
(in thousands)
 
2015
 
2014
 
Change
Cash flows from financing activities:
 
 
 
 
 
 
Equity issuances
 
$
198,494

 
102,453

 
96,041

Stock and operating partnership unit redemptions
 

 
(300
)
 
300

(Distributions to) contributions from limited partners in consolidated partnerships, net
 
(5,341
)
 
(5,303
)
 
(38
)
Dividend payments
 
(202,753
)
 
(193,962
)
 
(8,791
)
Unsecured credit facilities, net
 
90,000

 

 
90,000

Debt issuance
 
238,435

 
258,378

 
(19,943
)
Debt repayment
 
(532,046
)
 
(195,626
)
 
(336,420
)
Other
 

 

 

Net cash used in financing activities
 
$
(213,211
)
 
(34,360
)
 
(178,851
)

Significant financing activities during the years ended December 31, 2015 and 2014 include:

During 2015, the Parent Company issued 2.9 million shares of common stock in an underwritten forward public equity offering that settled in November 2015 resulting in net proceeds of $185.8 million. Additionally, the Parent company issued 189,000 shares of common stock through its ATM program at an average price of $67.86 per share resulting in net proceeds of $12.7 million. During 2014, the Parent Company issued 1.7 million shares of common stock through our ATM program at an average price of $60.00 per share. The proceeds were used to repay debt and fund investment activities.

During 2015, we increased our dividend distribution rate on our common stock and operating partnership units.

During 2015, we borrowed $90.0 million on our Term Loan, with no such borrowings during 2014.

During both 2015 and 2014, we issued new $250.0 million fixed rate ten-year unsecured public debt, net of discount and issuance costs, and received proceeds of $4.3 million and $10 million from a non-recourse property mortgages during 2015 and 2014, respectively.

During 2015, we used $532.0 million to repay debt, including $350.0 million to repay our 5.25% fixed rate ten-year unsecured public debt that matured in August 2015, $100 million to redeem a portion of our 2017 unsecured public debt in November 2015, $76.2 million to repay three mortgages that matured in 2015, and $5.9 million for scheduled principal payments. During 2014, we used $195.6 million to repay debt, including $150.0 million to repay our 4.95% fixed-rate ten-year unsecured public debt that matured, $38.7 million to repay mortgages that matured in 2014, and $6.9 million for scheduled principal payments.

We endeavor to maintain a high percentage of unencumbered assets. As of December 31, 2015, 80.3% of our wholly-owned real estate assets were unencumbered. Such assets allow us to access the secured and unsecured debt markets and to maintain availability on the Line. Our coverage ratio, including our pro-rata share of our partnerships, was 2.8 and 2.5 times for the trailing four quarters ended December 31, 2015 and December 31, 2014, respectively. We define our coverage ratio as earnings before interest, taxes, investment transaction profits net of deal costs, depreciation and amortization (“Core EBITDA”)

50



divided by the sum of the gross interest and scheduled mortgage principal paid to our lenders plus dividends paid to our preferred stockholders.

Through the end of 2016, we estimate that we will require approximately $198.7 million of cash, including $126.2 million to complete in-process developments and redevelopments, $41.4 million to repay maturing debt, and $31.1 million to fund our pro-rata share of estimated capital contributions to our co-investment partnerships for repayment of debt. If we start new developments or redevelop additional shopping centers, our cash requirements will increase. If we refinance maturing debt, our cash requirements will decrease. To meet our cash requirements, we may utilize cash generated from operations, proceeds from the sale of real estate, available borrowings from our Line, and when the capital markets are favorable, proceeds from the sale of equity and the issuance of new long-term debt.     

We continuously monitor the capital markets and evaluate our ability to issue new debt, to repay maturing debt or fund
our commitments. Based upon the current capital markets, our current credit ratings, and the number of high quality,
unencumbered properties that we own which could collateralize borrowings, we currently expect that we will successfully issue
new secured or unsecured debt to fund our obligations, as needed.

We have $300.0 million of fixed rate, unsecured debt maturing June 15, 2017. We expect to issue new fixed rate unsecured debt in 2017. In order to mitigate the risk of interest rate volatility, we previously entered into $220.0 million of forward starting interest rate swaps to partially hedge the new long-term debt issued in 2017. These interest rate swaps lock in the 10-year treasury rate and swap spread at a weighted average fixed rate of 3.48%, respectively. A current market based credit spread applicable to Regency will be added to the locked in fixed rate at time of issuance that will determine the final bond yield. We will cash settle these forward starting interest rate swaps when we issue the new debt. The actual cash settlement may differ from the current fair value of these interest rate swaps based on movements in interest rates.

Our Line, Term Loan, and unsecured loans require that we remain in compliance with various covenants, which are
described in Note 9 to the Consolidated Financial Statements. We are in compliance with these covenants at December 31, 2015 and expect to remain in compliance.

Contractual Obligations

We have debt obligations related to our mortgage loans, unsecured notes, unsecured credit facilities and interest rate swap obligations as described further below and in Note 9 and Note 10 to the Consolidated Financial Statements. We have shopping centers that are subject to non-cancelable long-term ground leases where a third party owns and has leased the underlying land to us to construct and/or operate a shopping center. In addition, we have non-cancelable operating leases pertaining to office space from which we conduct our business.

The following table of Contractual Obligations summarizes our debt maturities, including our pro-rata share of obligations within co-investment partnerships as of December 31, 2015, and excludes the following:

Recorded debt premiums or discounts that are not obligations;

Obligations related to construction or development contracts, since payments are only due upon satisfactory performance under the contracts;

Letters of credit of $5.9 million issued to cover performance obligations on certain development projects, which will be satisfied upon completion of the development projects; and

Obligations for retirement savings plans due to uncertainty around timing of participant withdrawals, which are solely within the control of the participant, and are further discussed in Note 14 to the Consolidated Financial Statements. 

51



 
 
Payments Due by Period
 
 
(in thousands)
 
2016
 
2017
 
2018
 
2019
 
2020
 
Beyond 5 Years
 
Total
Notes payable:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regency (1)
 
$
135,616

 
497,180

 
122,626

 
329,140

 
280,824

 
909,264

 
$
2,274,650

Regency's share of joint ventures (1) (2)
 
59,278

 
44,641

 
46,087

 
39,511

 
101,004

 
329,155

 
619,676

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regency
 
3,707

 
2,823

 
2,475

 
2,203

 
2,066

 
10,154

 
23,428

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Subleases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regency
 
(123
)
 
(46
)
 

 

 

 

 
(169
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ground leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regency
 
4,866

 
4,822

 
4,899

 
4,903

 
4,327

 
243,746

 
267,563

Regency's share of joint ventures
 
414

 
414

 
414

 
420

 
422

 
41,346

 
43,430

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
203,758

 
549,834

 
176,501

 
376,177

 
388,643

 
1,533,665

 
$
3,228,578

(1) Includes interest payments.
(2) We are obligated to contribute our pro-rata share to fund maturities if they are not refinanced. We believe that our partners are financially sound and have sufficient capital or access thereto to fund future capital requirements.  In the event that a co-investment partner was unable to fund its share of the capital requirements of the co-investment partnership, we would have the right, but not the obligation, to loan the defaulting partner the amount of its capital call. 


Critical Accounting Estimates

Knowledge about our accounting policies is necessary for a complete understanding of our financial statements. The preparation of our financial statements requires that we make certain estimates that impact the balance of assets and liabilities as of a financial statement date and the reported amount of income and expenses during a financial reporting period. These accounting estimates are based upon, but not limited to, our judgments about historical and expected future results, current market conditions, and interpretation of industry accounting standards. They are considered to be critical because of their significance to the financial statements and the possibility that future events may differ from those judgments, or that the use of different assumptions could result in materially different estimates. We review these estimates on a periodic basis to ensure reasonableness; however, the amounts we may ultimately realize could differ from such estimates.

Accounts Receivable and Straight Line Rent

Minimum rent, percentage rent, and expense recoveries from tenants for common area maintenance costs, insurance and real estate taxes are the Company's principal source of revenue. As a result of generating this revenue, we will routinely have accounts receivable due from tenants. We are subject to tenant defaults and bankruptcies that may affect the collection of outstanding receivables. To address the collectability of these receivables, we analyze historical tenant collection rates, write-off experience, tenant credit-worthiness and current economic trends when evaluating the adequacy of our allowance for doubtful accounts and straight line rent reserve. Although we estimate uncollectible receivables and provide for them through charges against income, actual experience may differ from those estimates.

Real Estate Investments

Acquisition of Real Estate Investments

Upon acquisition of real estate operating properties, the Company estimates the fair value of acquired tangible assets (consisting of land, building, building improvements and tenant improvements) and identified intangible assets and liabilities (consisting of above and below-market leases and in-place leases), assumed debt, and any noncontrolling interest in the acquiree at the date of acquisition, based on evaluation of information and estimates available at that date. Based on these estimates, the Company allocates the estimated fair value to the applicable assets and liabilities. Fair value is determined based on an exit price approach, which contemplates the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. If, up to one year from the acquisition date, information regarding fair value of the assets acquired and liabilities assumed is received and estimates are refined, appropriate adjustments are made to the purchase price allocation on a retrospective basis. The Company expenses transaction costs associated with business combinations in the period incurred.

We strategically co-invest with partners to own, manage, acquire, develop and redevelop operating properties. We analyze our investments in real estate partnerships in order to determine whether the entity should be consolidated. If it is determined that these investments do not require consolidation because the entities are not variable interest entities (“VIEs”), we are not considered the primary beneficiary of the entities determined to be VIEs, we do not have voting control, and/or the limited partners (or non-managing members) have substantive participatory rights, then the selection of the accounting method used to account for our investments in real estate partnerships is generally determined by our voting interests and the degree of influence we have over the entity. Management uses its judgment when making these determinations. We use the equity method of accounting for investments in real estate partnerships when we own 20% or more of the voting interests and have significant influence but do not have a controlling financial interest, or if we own less than 20% of the voting interests but have determined that we have significant influence. Under the equity method, we record our investments in and advances to these entities as investments in real estate partnerships in our consolidated balance sheets, and our proportionate share of earnings or losses earned by the joint venture is recognized in equity in income (loss) of investments in real estate partnerships in our consolidated statements of operations.
 
Development of Real Estate Assets and Cost Capitalization

We capitalize the acquisition of land, the construction of buildings, and other specifically identifiable development costs incurred by recording them in properties in development in our accompanying Consolidated Balance Sheets. Other specifically identifiable development costs include pre-development costs essential to the development process, as well as, interest, real estate taxes, and direct employee costs incurred during the development period. Once a development property is substantially complete and held available for occupancy, these indirect costs are no longer capitalized.

52




Pre-development costs are incurred prior to land acquisition during the due diligence phase and include contract deposits, legal, engineering, and other professional fees related to evaluating the feasibility of developing a shopping center. If we determine it is probable that a specific project undergoing due diligence will not be developed, we immediately expense all related capitalized pre-development costs not considered recoverable.
Interest costs are capitalized to each development project based on applying our weighted average borrowing rate to that portion of the actual development costs expended. We cease interest cost capitalization when the property is no longer being developed or is available for occupancy upon substantial completion of tenant improvements, but in no event would we capitalize interest on the project beyond 12 months after the anchor opens for business. During the years ended December 31, 2015, 2014, and 2013, we capitalized interest of $6.7 million, $7.1 million, and $6.1 million, respectively, on our development projects.
Real estate taxes are capitalized to each development project over the same period as we capitalize interest.
We have a staff of employees who directly support our development program. All direct internal costs attributable to these development activities are capitalized as part of each development project. The capitalization of costs is directly related to the actual level of development activity occurring. During the years ended December 31, 2015, 2014, and 2013, we capitalized $13.8 million, $16.1 million, and $11.7 million, respectively, of direct internal costs incurred to support our development program.

Valuation of Real Estate Investments

We evaluate whether there are any indicators that have occurred, including property operating performance and general market conditions, that would result in us determining that the carrying value of our real estate properties (including any related amortizable intangible assets or liabilities) may not be recoverable. If such indicators occur, we compare the current carrying value of the asset to the estimated undiscounted cash flows that are directly associated with the use and ultimate disposition of the asset. Our estimated cash flows are based on several key assumptions, including rental rates, costs of tenant improvements, leasing commissions, anticipated hold period, and assumptions regarding the residual value upon disposition, including the exit capitalization rate. These key assumptions are subjective in nature and the resulting impairment, if any, could differ from the actual gain or loss recognized upon ultimate sale in an arm's length transaction. If the carrying value of the asset exceeds the estimated undiscounted cash flows, an impairment loss is recognized equal to the excess of carrying value over fair value. Changes in our disposition strategy or changes in the marketplace may alter the hold period of an asset or asset group, which may result in an impairment loss and such loss could be material to the Company's financial condition or operating performance.

We evaluate our investments in real estate partnerships for impairment whenever there are indicators, including underlying property operating performance and general market conditions, that the value of our investments in real estate partnerships may be impaired. An investment in a real estate partnerships is considered impaired only if we determine that its fair value is less than the net carrying value of the investment in that real estate partnerships on an other-than-temporary basis. Cash flow projections for the investments consider property level factors, such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other factors. We consider various qualitative factors to determine if a decrease in the value of our investment is other-than-temporary. These factors include the age of the real estate partnerships, our intent and ability to retain our investment in the entity, the financial condition and long-term prospects of the entity and relationships with our partners and banks. If we believe that the decline in the fair value of the investment is temporary, no impairment charge is recorded. If our analysis indicates that there is an other-than-temporary impairment related to the investment in a particular real estate partnership, the carrying value of the investment will be adjusted to an amount that reflects the estimated fair value of the investment.

The fair value of real estate investments is subjective and is determined through comparable sales information and other market data if available, or through use of an income approach such as the direct capitalization or the traditional discounted cash flow methods. Such cash flow projections consider factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other factors, and therefore are subject to management judgment and changes in those factors could impact the determination of fair value. In estimating the fair value of undeveloped land, we generally use market data and comparable sales information.

Derivative Instruments

The Company utilizes financial derivative instruments to manage risks associated with changing interest rates. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or future payment of known and uncertain cash amounts, the amount of which are determined by interest rates.  The Company's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company's known or expected cash payments principally related to the Company's borrowings.  For additional information on the Company’s use and accounting for derivatives, see Notes 1 and 10 to the Consolidated Financial Statements.

53




The Company assesses effectiveness of our cash flow hedges both at inception and on an ongoing basis. The effective portion of changes in fair value of the interest rate swaps associated with our cash flow hedges is recorded in other comprehensive income which is included in accumulated other comprehensive loss on our consolidated balance sheet and our consolidated statement of equity. Our cash flow hedges become ineffective if critical terms of the hedging instrument and the debt instrument do not perfectly match such as notional amounts, settlement dates, reset dates, calculation period and LIBOR rate.  If a cash flow hedge is deemed ineffective, the ineffective portion of changes in fair value of the interest rate swaps associated with our cash flow hedges is recognized in earnings in the period affected.

The fair value of the Company's interest rate derivatives is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative.  This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities.  The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. 


Recent Accounting Pronouncements

See Note 1 to Consolidated Financial Statements.

Environmental Matters

We are subject to numerous environmental laws and regulations as they apply to our shopping centers pertaining to chemicals used by the dry cleaning industry, the existence of asbestos in older shopping centers, and underground petroleum storage tanks. We believe that the tenants who currently operate dry cleaning plants or gas stations do so in accordance with current laws and regulations. Generally, we use all legal means to cause tenants to remove dry cleaning plants from our shopping centers or convert them to more environmentally friendly systems. Where available, we have applied and been accepted into state-sponsored environmental programs. We have a blanket environmental insurance policy for third-party liabilities and remediation costs on shopping centers that currently have no known environmental contamination. We have also placed environmental insurance, where possible, on specific properties with known contamination, in order to mitigate our environmental risk. We monitor the shopping centers containing environmental issues and in certain cases voluntarily remediate the sites. We also have legal obligations to remediate certain sites and we are in the process of doing so.

As of December 31, 2015 we had accrued liabilities of $9.1 million for our pro-rata share of environmental remediation. We believe that the ultimate disposition of currently known environmental matters will not have a material effect on our financial position, liquidity, or results of operations; however, we can give no assurance that existing environmental studies on our shopping centers have revealed all potential environmental liabilities; that any previous owner, occupant or tenant did not create any material environmental condition not known to us; that the current environmental condition of the shopping centers will not be affected by tenants and occupants, by the condition of nearby properties, or by unrelated third parties; or that changes in applicable environmental laws and regulations or their interpretation will not result in additional environmental liability to us.

Off-Balance Sheet Arrangements

We do not have off-balance sheet arrangements, financings, or other relationships with other unconsolidated entities (other than our unconsolidated investment partnerships) or other persons, also known as variable interest entities, not previously discussed. Our unconsolidated investment partnership properties have been financed with non-recourse loans. We have no guarantees related to these loans.

Inflation/Deflation

Inflation has been historically low and has had a minimal impact on the operating performance of our shopping centers; however, inflation may become a greater concern in the future. Substantially all of our long-term leases contain provisions designed to mitigate the adverse impact of inflation. Most of our leases require tenants to pay their pro-rata share of operating expenses, including common-area maintenance, real estate taxes, insurance and utilities, thereby reducing our exposure to increases in costs and operating expenses resulting from inflation. In addition, many of our leases are for terms of less than ten years, which permits us to seek increased rents upon re-rental at market rates. However, during deflationary periods or periods of economic weakness, minimum rents and percentage rents will decline as the supply of available retail space exceeds demand and consumer spending declines. Occupancy declines resulting from a weak economic period will also likely result in lower recovery rates of our operating expenses.


54




Item 7A. Quantitative and Qualitative Disclosures about Market Risk

We are exposed to two significant components of interest rate risk:

We have an $800.0 million Line commitment and a $165.0 million Term Loan commitment, as further described in Note 9 to the Consolidated Financial Statements. Our Line commitment has a variable interest rate that is based upon an annual rate of LIBOR plus 0.925 basis points and our Term Loan has a variable rate of LIBOR plus 0.975 basis points. Our Line is subject to a fee on the $800.0 million total capacity. LIBOR rates charged on our Line and Term Loan (collectively our "unsecured credit facilities") change monthly. The spread on the unsecured credit facilities is dependent upon maintaining specific credit ratings. If our credit ratings are downgraded, the spread on the unsecured credit facilities would increase, resulting in higher interest costs.

We are also exposed to changes in interest rates when we refinance our existing long-term fixed rate debt. The objective of our interest rate risk management program is to limit the impact of interest rate changes on earnings and cash flows. To achieve these objectives, we borrow primarily at fixed interest rates and may enter into derivative financial instruments such as interest rate swaps, caps, or treasury locks in order to mitigate our interest rate risk on a related financial instrument. We do not enter into derivative or interest rate transactions for speculative purposes. Our interest rate swaps are structured solely for the purpose of interest rate protection.

We have $300.0 million of fixed rate, unsecured debt maturing in June 2017. In order to mitigate the risk of interest rate volatility, we previously entered into $220.0 million of forward starting interest rate swaps to partially hedge the new debt expected to be issued in 2017. These interest rate swaps lock in the 10-year treasury rate and swap spread at a weighted average fixed rate of 3.48%. A current market based credit spread applicable to Regency will be added to the locked in fixed rate at time of issuance that will determine the final bond yield.

We continuously monitor the capital markets and evaluate our ability to issue new debt to repay maturing debt or fund our commitments. Based upon the current capital markets, our current credit ratings, our current capacity under our unsecured credit facilities, and the number of high quality, unencumbered properties that we own which could collateralize borrowings, we expect that we will be able to successfully issue new secured or unsecured debt to fund these debt obligations.

Our interest rate risk is monitored using a variety of techniques. The table below presents the principal cash flows, weighted average interest rates of remaining debt, and the fair value of total debt as of December 31, 2015 (dollars in thousands). The table is presented by year of expected maturity to evaluate the expected cash flows and sensitivity to interest rate changes. Although the average interest rate for variable rate debt is included in the table, those rates represent rates that existed as of December 31, 2015 and are subject to change on a monthly basis. Further, the table below incorporates only those exposures that exist as of December 31, 2015 and does not consider exposures or positions that could arise after that date. Since firm commitments are not presented, the table has limited predictive value. As a result, our ultimate realized gain or loss with respect to interest rate fluctuations will depend on the exposures that arise during the period, our hedging strategies at that time, and actual interest rates. 
 
 
2016
 
2017
 
2018
 
2019
 
2020
 
Thereafter
 
Total
 
Fair Value
Fixed rate debt
 
$
47,609

 
422,720

 
61,969

 
109,612

 
205,209

 
820,601

 
1,667,720

 
1,793,200

Average interest rate for all fixed rate debt (1)
 
5.20
%
 
4.94
%
 
4.87
%
 
4.57
%
 
4.25
%
 
4.25
%
 

 

Variable rate LIBOR debt
 
$

 
357

 
492

 
165,517

 
32,788

 

 
199,154

 
165,300

Average interest rate for all variable rate debt (1)
 
%
 
1.55
%
 
1.54
%
 
1.80
%
 
2.72
%
 
%
 

 

(1) Average interest rates at the end of each year presented.

55



Item 8.    Consolidated Financial Statements and Supplementary Data

Regency Centers Corporation and Regency Centers, L.P.

Index to Financial Statements

 
 
Regency Centers Corporation:
 
 
 
Regency Centers, L.P.:
 
 
 
 
 
Financial Statement Schedule
 

All other schedules are omitted because of the absence of conditions under which they are required, materiality or because information required therein is shown in the consolidated financial statements or notes thereto.




56




Report of Independent Registered Public Accounting Firm
The Board of Directors and Stockholders
Regency Centers Corporation:

We have audited the accompanying consolidated balance sheets of Regency Centers Corporation and subsidiaries (the Company) as of December 31, 2015 and 2014, and the related consolidated statements of operations, comprehensive income, equity, and cash flows for each of the years in the three-year period ended December 31, 2015. In connection with our audits of the consolidated financial statements, we also have audited financial statement Schedule III. These consolidated financial statements and financial statement schedule are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedule based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Regency Centers Corporation and subsidiaries as of December 31, 2015 and 2014, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2015, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the related financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Regency Centers Corporation's internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated February 18, 2016 expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting.
/s/ KPMG LLP

February 18, 2016
Jacksonville, Florida
Certified Public Accountants

57



Report of Independent Registered Public Accounting Firm
The Board of Directors and Stockholders
Regency Centers Corporation:

We have audited Regency Centers Corporation's internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Regency Centers Corporation's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
In our opinion, Regency Centers Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Regency Centers Corporation and subsidiaries as of December 31, 2015 and 2014, and the related consolidated statements of operations, comprehensive income, equity, and cash flows for each of the years in the three-year period ended December 31, 2015, and our report dated February 18, 2016 expressed an unqualified opinion on those consolidated financial statements.
/s/ KPMG LLP

February 18, 2016
Jacksonville, Florida
Certified Public Accountants

58



Report of Independent Registered Public Accounting Firm
The Unit Holders of Regency Centers, L.P. and
the Board of Directors and Stockholders of
Regency Centers Corporation:

We have audited the accompanying consolidated balance sheets of Regency Centers, L.P. and subsidiaries (the Partnership) as of December 31, 2015 and 2014, and the related consolidated statements of operations, comprehensive income, capital, and cash flows for each of the years in the three-year period ended December 31, 2015. In connection with our audits of the consolidated financial statements, we also have audited financial statement Schedule III. These consolidated financial statements and financial statement schedule are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedule based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Regency Centers, L.P. and subsidiaries as of December 31, 2015 and 2014, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2015, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the related financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Regency Centers, L.P.'s internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated February 18, 2016 expressed an unqualified opinion on the effectiveness of the Partnership's internal control over financial reporting.
/s/ KPMG LLP

February 18, 2016
Jacksonville, Florida
Certified Public Accountants

59




Report of Independent Registered Public Accounting Firm
The Unit Holders of Regency Centers, L.P. and
the Board of Directors and Stockholders of
Regency Centers Corporation:

We have audited Regency Centers, L.P.'s internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Regency Centers, L.P.'s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Partnership's internal control over financial reporting based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
In our opinion, Regency Centers, L.P. maintained, in all material respects, effective internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Regency Centers, L.P. and subsidiaries as of December 31, 2015 and 2014, and the related consolidated statements of operations, comprehensive income, capital, and cash flows for each of the years in the three-year period ended December 31, 2015, and our report dated February 18, 2016 expressed an unqualified opinion on those consolidated financial statements.
/s/ KPMG LLP

February 18, 2016
Jacksonville, Florida
Certified Public Accountants

60




REGENCY CENTERS CORPORATION
Consolidated Balance Sheets
December 31, 2015 and 2014
(in thousands, except share data)
 
 
2015
 
2014
Assets
 
 
 
 
Real estate investments at cost (notes 2 and 3):
 
 
 
 
Land
 
$
1,432,468

 
1,380,211

Buildings and improvements
 
2,896,396

 
2,790,137

Properties in development
 
217,036

 
239,538

 
 
4,545,900

 
4,409,886

Less: accumulated depreciation
 
1,043,787

 
933,708

 
 
3,502,113

 
3,476,178

Investments in real estate partnerships (note 4)
 
306,206

 
333,167

Net real estate investments
 
3,808,319

 
3,809,345

Cash and cash equivalents
 
36,856

 
113,776

Restricted cash
 
3,767

 
8,013

Accounts receivable, net of allowance for doubtful accounts of $5,295 and $4,523 at December 31, 2015 and 2014, respectively
 
32,292

 
30,999

Straight-line rent receivable, net of reserve of $1,365 and $652 at December 31, 2015 and 2014, respectively
 
63,392

 
55,768

Notes receivable (note 5)
 
10,480

 
12,132

Deferred costs, less accumulated amortization of $88,694 and $81,822 at December 31, 2015 and 2014, respectively
 
79,619

 
71,502

Acquired lease intangible assets, less accumulated amortization of $45,639 and $36,112 at December 31, 2015 and 2014, respectively (note 6)
 
105,380

 
52,365

Trading securities held in trust, at fair value (note 14)
 
29,093

 
28,134

Other assets
 
21,876

 
15,136

Total assets
 
$
4,191,074

 
4,197,170

Liabilities and Equity
 
 
 
 
Liabilities:
 
 
 
 
Notes payable (note 9)
 
$
1,707,478

 
1,946,357

Unsecured credit facilities (note 9)
 
165,000

 
75,000

Accounts payable and other liabilities
 
164,515

 
181,197

Acquired lease intangible liabilities, less accumulated accretion of $17,555 and $13,993 at December 31, 2015 and 2014, respectively (note 6)
 
42,034

 
32,143

Tenants’ security and escrow deposits and prepaid rent
 
29,427

 
25,991

Total liabilities
 
2,108,454

 
2,260,688

Commitments and contingencies (notes 16 and 17)
 

 

Equity:
 
 
 
 
Stockholders’ equity (notes 12 and 13):
 
 
 
 
Preferred stock, $0.01 par value per share, 30,000,000 shares authorized; 13,000,000 Series 6 and 7 shares issued and outstanding at December 31, 2015 and December 31, 2014, with liquidation preferences of $25 per share
 
325,000

 
325,000

Common stock $0.01 par value per share,150,000,000 shares authorized; 97,212,638 and 94,108,061 shares issued at December 31, 2015 and 2014, respectively
 
972

 
941

Treasury stock at cost, 417,862 and 425,246 shares held at December 31, 2015 and 2014, respectively
 
(19,658
)
 
(19,382
)
Additional paid in capital
 
2,742,508

 
2,540,153

Accumulated other comprehensive loss
 
(58,693
)
 
(57,748
)
Distributions in excess of net income
 
(936,020
)
 
(882,372
)
Total stockholders’ equity
 
2,054,109

 
1,906,592

Noncontrolling interests (note 12):
 
 
 
 
Exchangeable operating partnership units, aggregate redemption value of $10,502 and $9,833 at December 31, 2015 and 2014, respectively
 
(1,975
)
 
(1,914
)
Limited partners’ interests in consolidated partnerships
 
30,486

 
31,804

Total noncontrolling interests
 
28,511

 
29,890

Total equity
 
2,082,620

 
1,936,482

Total liabilities and equity
 
$
4,191,074

 
4,197,170

See accompanying notes to consolidated financial statements.

61



REGENCY CENTERS CORPORATION
Consolidated Statements of Operations
For the years ended December 31, 2015, 2014, and 2013
(in thousands, except per share data)
 
 
2015
 
2014
 
2013
Revenues:
 
 
 
 
 
 
Minimum rent
 
$
415,155

 
390,697

 
353,833

Percentage rent
 
3,750

 
3,488

 
3,583

Recoveries from tenants and other income
 
125,295

 
119,618

 
106,494

Management, transaction, and other fees
 
25,563

 
24,095

 
25,097

Total revenues
 
569,763

 
537,898

 
489,007

Operating expenses:
 
 
 
 
 
 
Depreciation and amortization
 
146,829

 
147,791

 
130,630

Operating and maintenance
 
82,978

 
77,788

 
71,018

General and administrative
 
65,600

 
60,242

 
61,234

Real estate taxes
 
61,855

 
59,031

 
53,726

Other operating expenses
 
7,836

 
8,496

 
8,079

Total operating expenses
 
365,098

 
353,348

 
324,687

Other expense (income):
 
 
 
 
 
 
Interest expense, net of interest income of $1,590, $1,210, and $1,643 in 2015, 2014, and 2013, respectively (note 9)
 
102,622

 
109,491

 
108,966

Provision for impairment
 

 
1,257

 
6,000

Early extinguishment of debt
 
8,239

 
18

 
32

Net investment income, including unrealized losses (gains) of $1,734, $1,058, and $(2,231) in 2015, 2014, and 2013, respectively (notes 8 and 14)
 
(625
)
 
(9,449
)
 
(3,257
)
Gain on remeasurement of investment in real estate partnership
 

 
(18,271
)
 

Total other expense (income)
 
110,236

 
83,046

 
111,741

Income from operations before equity in income of investments in real estate partnerships
 
94,429

 
101,504

 
52,579

Equity in income of investments in real estate partnerships (note 4)
 
22,508

 
31,270

 
31,718

Income tax (benefit) of taxable REIT subsidiary
 

 
(996
)
 

Income from operations
 
116,937

 
133,770

 
84,297

Discontinued operations, net (note 3):
 
 
 
 
 
 
Operating income
 

 

 
7,332

Gain on sale of operating properties, net of tax
 

 

 
57,953

Income from discontinued operations
 

 

 
65,285

Gain on sale of real estate
 
35,606

 
55,077

 
1,703

Net income
 
152,543

 
188,847

 
151,285

Noncontrolling interests:
 
 
 
 
 
 
Exchangeable operating partnership units
 
(240
)
 
(319
)
 
(276
)
Limited partners’ interests in consolidated partnerships
 
(2,247
)
 
(1,138
)
 
(1,205
)
Income attributable to noncontrolling interests
 
(2,487
)
 
(1,457
)
 
(1,481
)
Net income attributable to the Company
 
150,056

 
187,390

 
149,804

Preferred stock dividends
 
(21,062
)
 
(21,062
)
 
(21,062
)
Net income attributable to common stockholders

$
128,994

 
166,328

 
128,742

Income per common share - basic (note 15):
 
 
 
 
 
 
Continuing operations
 
$
1.37

 
1.80

 
0.69

Discontinued operations
 

 

 
0.71

Net income attributable to common stockholders
 
$
1.37

 
1.80

 
1.40

Income per common share - diluted (note 15):
 
 
 
 
 
 
Continuing operations
 
$
1.36

 
1.80

 
0.69

Discontinued operations
 

 

 
0.71

Net income attributable to common stockholders
 
$
1.36

 
1.80

 
1.40

See accompanying notes to consolidated financial statements.

62



REGENCY CENTERS CORPORATION
Consolidated Statements of Comprehensive Income
For the years ended December 31, 2015, 2014, and 2013
(in thousands)
 
 
2015
 
2014
 
2013
Net income
 
$
152,543

 
188,847

 
151,285

Other comprehensive income:
 
 
 
 
 
 
Effective portion of change in fair value of derivative instruments:
 
 
 
 
 
 
Effective portion of change in fair value of derivative instruments
 
(10,089
)
 
(49,968
)
 
30,985

Less: reclassification adjustment of derivative instruments included in net income
 
9,152

 
9,353

 
9,433

Available for sale securities
 
 
 
 
 
 
Unrealized (loss) gain on available-for-sale securities
 
(43
)
 
7,765

 

Less: realized gains on sale of available-for-sale securities recognized in net income
 

 
(7,765
)
 

Other comprehensive income
 
(980
)
 
(40,615
)
 
40,418

Comprehensive income
 
151,563

 
148,232

 
191,703

Less: comprehensive (loss) income attributable to noncontrolling interests:
 
 
 
 
 
 
Net income attributable to noncontrolling interests
 
2,487

 
1,457

 
1,481

Other comprehensive (loss) income attributable to noncontrolling interests
 
(35
)
 
(271
)
 
107

Comprehensive income attributable to noncontrolling interests
 
2,452

 
1,186

 
1,588

Comprehensive income attributable to the Company
 
$
149,111

 
147,046

 
190,115

See accompanying notes to consolidated financial statements.

63




REGENCY CENTERS CORPORATION
Consolidated Statements of Equity
For the years ended December 31, 2015, 2014, and 2013
(in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling Interests
 
 
 
 
Preferred
Stock
 
Common
Stock
 
Treasury
Stock
 
Additional
Paid In
Capital
 
Accumulated
Other
Comprehensive
Loss
 
Distributions
in Excess of
Net Income
 
Total
Stockholders’
Equity
 
Exchangeable
Operating
Partnership
Units
 
Limited
Partners’
Interest  in
Consolidated
Partnerships
 
Total
Noncontrolling
Interests
 
Total
Equity
Balance at December 31, 2012
$
325,000

 
904

 
(14,924
)
 
2,312,310

 
(57,715
)
 
(834,810
)
 
1,730,765

 
(1,153
)
 
16,299

 
15,146

 
1,745,911

Net income
 

 

 

 

 

 
149,804

 
149,804

 
276

 
1,205

 
1,481

 
151,285

Other comprehensive income
 

 

 

 

 
40,311

 

 
40,311

 
75

 
32

 
107

 
40,418

Deferred compensation plan, net
 

 

 
(1,802
)
 
1,802

 

 

 

 

 

 

 

Amortization of restricted stock issued
 

 

 

 
14,141

 

 

 
14,141

 

 

 

 
14,141

Common stock redeemed for taxes withheld for stock based compensation, net
 

 

 

 
(2,887
)
 

 

 
(2,887
)
 

 

 

 
(2,887
)
Common stock issued for dividend reinvestment plan
 

 

 

 
1,075

 

 

 
1,075

 

 

 

 
1,075

Common stock issued for stock offerings, net of issuance costs
 

 
19

 

 
99,734

 

 

 
99,753

 

 

 

 
99,753

Common stock issued for partnership units exchanged
 

 

 

 
302

 

 

 
302

 
(302
)
 

 
(302
)
 

Contributions from partners
 

 

 

 

 

 

 

 

 
5,792

 
5,792

 
5,792

Distributions to partners
 

 

 

 

 

 

 

 

 
(4,122
)
 
(4,122
)
 
(4,122
)
Cash dividends declared:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock/unit
 

 

 

 

 

 
(21,062
)
 
(21,062
)
 

 

 

 
(21,062
)
Common stock/unit ($1.85 per share)
 

 

 

 

 

 
(168,848
)
 
(168,848
)
 
(322
)
 

 
(322
)
 
(169,170
)
Balance at December 31, 2013
$
325,000

 
923

 
(16,726
)
 
2,426,477

 
(17,404
)
 
(874,916
)
 
1,843,354

 
(1,426
)
 
19,206

 
17,780

 
1,861,134

Net income
 

 

 

 

 

 
187,390

 
187,390

 
319

 
1,138

 
1,457

 
188,847

Other comprehensive income
 

 

 

 

 
(40,344
)
 

 
(40,344
)
 
(70
)
 
(201
)
 
(271
)
 
(40,615
)
Deferred compensation plan, net
 

 

 
(2,656
)
 
2,656

 

 

 

 

 

 

 

Amortization of restricted stock issued
 

 

 

 
12,161

 

 

 
12,161

 

 

 

 
12,161

Common stock redeemed for taxes withheld for stock based compensation, net
 

 

 

 
(3,493
)
 

 

 
(3,493
)
 

 

 

 
(3,493
)
Common stock issued for dividend reinvestment plan
 

 

 

 
1,184

 

 

 
1,184

 

 

 

 
1,184

Common stock issued for stock offerings, net of issuance costs
 

 
18

 

 
102,435

 

 

 
102,453

 

 

 

 
102,453

Redemption of preferred units
 

 

 

 

 

 

 

 
(300
)
 

 
(300
)
 
(300
)

64



REGENCY CENTERS CORPORATION
Consolidated Statements of Equity
For the years ended December 31, 2015, 2014, and 2013
(in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling Interests
 
 
 
 
Preferred
Stock
 
Common
Stock
 
Treasury
Stock
 
Additional
Paid In
Capital
 
Accumulated
Other
Comprehensive
Loss
 
Distributions
in Excess of
Net Income
 
Total
Stockholders’
Equity
 
Exchangeable
Operating
Partnership
Units
 
Limited
Partners’
Interest  in
Consolidated
Partnerships
 
Total
Noncontrolling
Interests
 
Total
Equity
Common stock issued for partnership units exchanged
 

 

 

 
137

 

 

 
137

 
(137
)
 

 
(137
)
 

Contributions from partners
 

 

 

 

 

 

 

 

 
16,204

 
16,204

 
16,204

Distributions to partners
 

 

 

 
(1,404
)
 

 

 
(1,404
)
 

 
(4,543
)
 
(4,543
)
 
(5,947
)
Cash dividends declared:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock/unit
 


 


 


 


 


 
(21,062
)
 
(21,062
)
 

 

 

 
(21,062
)
Common stock/unit ($1.88 per share)
 

 

 

 

 

 
(173,784
)
 
(173,784
)
 
(300
)
 

 
(300
)
 
(174,084
)
Balance at December 31, 2014
$
325,000

 
941

 
(19,382
)
 
2,540,153

 
(57,748
)
 
(882,372
)
 
1,906,592

 
(1,914
)
 
31,804

 
29,890

 
1,936,482

Net income
 

 

 

 

 

 
150,056

 
150,056

 
240

 
2,247

 
2,487

 
152,543

Other comprehensive income
 

 

 

 

 
(945
)
 

 
(945
)
 
(2
)
 
(33
)
 
(35
)
 
(980
)
Deferred compensation plan, net
 

 

 
(276
)
 
276

 

 

 

 

 

 

 

Amortization of restricted stock issued
 

 

 

 
13,869

 

 

 
13,869

 

 

 

 
13,869

Common stock redeemed for taxes withheld for stock based compensation, net
 

 

 

 
(9,706
)
 

 

 
(9,706
)
 

 

 

 
(9,706
)
Common stock issued for dividend reinvestment plan
 

 

 

 
1,250

 

 

 
1,250

 

 

 

 
1,250

Common stock issued for stock offerings, net of issuance costs
 

 
31

 

 
198,463

 

 

 
198,494

 

 

 

 
198,494

Contributions from partners
 

 

 

 

 

 

 

 

 
717

 
717

 
717

Distributions to partners
 

 

 

 
(1,797
)
 

 

 
(1,797
)
 

 
(4,249
)
 
(4,249
)
 
(6,046
)
Cash dividends declared:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock/unit
 

 

 

 

 

 
(21,062
)
 
(21,062
)
 

 

 

 
(21,062
)
Common stock/unit ($1.94 per share)
 

 

 

 

 

 
(182,642
)
 
(182,642
)
 
(299
)
 

 
(299
)
 
(182,941
)
Balance at December 31, 2015
$
325,000

 
972

 
(19,658
)
 
2,742,508

 
(58,693
)
 
(936,020
)
 
2,054,109

 
(1,975
)
 
30,486

 
28,511

 
2,082,620

See accompanying notes to consolidated financial statements.

65



REGENCY CENTERS CORPORATION
Consolidated Statements of Cash Flows
For the years ended December 31, 2015, 2014, and 2013
(in thousands)

 
 
2015
 
2014
 
2013
Cash flows from operating activities:
 
 
 
 
 
 
Net income
 
$
152,543

 
188,847

 
151,285

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
Depreciation and amortization
 
146,829

 
147,791

 
134,454

Amortization of deferred loan cost and debt premium
 
9,677

 
10,521

 
12,339

Amortization and (accretion) of above and below market lease intangibles, net
 
(1,598
)
 
(3,101
)
 
(2,488
)
Stock-based compensation, net of capitalization
 
11,081

 
9,662

 
12,191

Equity in income of investments in real estate partnerships (note 4)
 
(22,508
)
 
(31,270
)
 
(31,718
)
Gain on remeasurement of investment in real estate partnership
 

 
(18,271
)
 

Gain on sale of real estate, net of tax
 
(35,606
)
 
(55,077
)
 
(59,656
)
Provision for impairment
 

 
1,257

 
6,000

Early extinguishment of debt
 
8,239

 
18

 
32

Distribution of earnings from operations of investments in real estate partnerships
 
46,646

 
42,767

 
45,377

Settlement of derivative instruments
 
(7,267
)
 
4,648

 

Gain on derivative instruments
 

 
(13
)
 
(19
)
Deferred compensation expense
 
207

 
1,386

 
3,294

Realized and unrealized gain on investments (note 8 and 14)
 
(626
)
 
(9,158
)
 
(3,293
)
Changes in assets and liabilities:
 
 
 
 
 
 
Restricted cash
 
1,926

 
848

 
(62
)
Accounts receivable
 
(11,965
)
 
(6,225
)
 
(5,042
)
Straight-line rent receivable, net
 
(8,231
)
 
(6,544
)
 
(5,459
)
Deferred leasing costs
 
(12,949
)
 
(8,252
)
 
(10,086
)
Other assets
 
(496
)
 
89

 
(1,866
)
Accounts payable and other liabilities
 
(3,810
)
 
6,201

 
(672
)
Tenants’ security and escrow deposits and prepaid rent
 
3,545

 
1,618

 
6,120

Net cash provided by operating activities
 
275,637

 
277,742

 
250,731

Cash flows from investing activities:
 
 
 
 
 
 
Acquisition of operating real estate
 
(42,983
)
 
(112,120
)
 
(107,790
)
Advance deposits on acquisition of operating real estate
 
(2,250
)
 

 

Real estate development and capital improvements
 
(205,103
)
 
(238,237
)
 
(213,282
)
Proceeds from sale of real estate investments
 
108,822

 
118,787

 
212,632

Collection of notes receivable
 
1,719

 

 
27,354

Investments in real estate partnerships (note 4)
 
(20,054
)
 
(23,577
)
 
(10,883
)
Distributions received from investments in real estate partnerships
 
23,801

 
37,152

 
87,111

Dividends on investments
 
243

 
243

 
194

Acquisition of securities
 
(31,941
)
 
(23,760
)
 
(19,144
)
Proceeds from sale of securities
 
28,400

 
31,222

 
13,991

Net cash used in investing activities
 
(139,346
)
 
(210,290
)
 
(9,817
)

66



REGENCY CENTERS CORPORATION
Consolidated Statements of Cash Flows
For the years ended December 31, 2015, 2014, and 2013
(in thousands)

 
 
2015
 
2014
 
2013
Cash flows from financing activities:
 
 
 
 
 
 
Net proceeds from common stock issuance
 
198,494

 
102,453

 
99,753

Proceeds from sale of treasury stock
 

 

 
34

Redemption of preferred stock and partnership units
 

 
(300
)
 

(Distributions to) contributions from limited partners in consolidated partnerships, net
 
(5,341
)
 
(5,303
)
 
1,514

Distributions to exchangeable operating partnership unit holders
 
(299
)
 
(300
)
 
(322
)
Dividends paid to common stockholders
 
(181,392
)
 
(172,600
)
 
(167,773
)
Dividends paid to preferred stockholders
 
(21,062
)
 
(21,062
)
 
(21,062
)
Repayment of fixed rate unsecured notes
 
(450,000
)
 
(150,000
)
 

Proceeds from issuance of fixed rate unsecured notes, net
 
248,160

 
248,705

 

Proceeds from unsecured credit facilities
 
445,000

 
255,000

 
82,000

Repayment of unsecured credit facilities
 
(355,000
)
 
(255,000
)
 
(177,000
)
Proceeds from notes payable
 
4,316

 
12,739

 
36,350

Repayment of notes payable
 
(76,168
)
 
(38,717
)
 
(27,960
)
Scheduled principal payments
 
(5,878
)
 
(6,909
)
 
(7,530
)
Payment of loan costs
 
(5,998
)
 
(3,066
)
 
(583
)
Early redemption costs
 
(8,043
)
 

 

Net cash used in financing activities
 
(213,211
)
 
(34,360
)
 
(182,579
)
Net (decrease) increase in cash and cash equivalents
 
(76,920
)
 
33,092

 
58,335

Cash and cash equivalents at beginning of the year
 
113,776

 
80,684

 
22,349

Cash and cash equivalents at end of the year
 
$
36,856

 
113,776

 
80,684

Supplemental disclosure of cash flow information:
 
 
 
 
 
 
Cash paid for interest (net of capitalized interest of $6,740, $7,142, and $6,078 in 2015, 2014, and 2013, respectively)
 
$
101,527

 
109,425

 
107,312

Cash paid for income taxes
 
$
1,015

 
2,169

 

Supplemental disclosure of non-cash transactions:
 
 
 
 
 
 
Common stock issued for partnership units exchanged
 
$

 
137

 
302

Real estate received through distribution in kind
 
$

 

 
7,576

Mortgage loans assumed through distribution in kind
 
$

 

 
7,500

Mortgage loans assumed for the acquisition of real estate
 
$
42,799

 
103,187

 

Unrealized gain (loss) on available-for-sale securities
 
$
(43
)
 

 

Initial fair value of non-controlling interest recorded at acquisition
 
$

 
15,385

 

Acquisition of previously unconsolidated real estate investments
 
$

 
16,182

 

Change in fair value of derivative instruments
 
$
(9,012
)
 
(49,968
)
 
30,952

Common stock issued for dividend reinvestment plan
 
$
1,250

 
1,184

 
1,075

Stock-based compensation capitalized
 
$
2,988

 
2,707

 
2,188

Contributions from limited partners in consolidated partnerships, net
 
$
13

 
1,579

 
156

Common stock issued for dividend reinvestment in trust
 
$
833

 
779

 
660

Contribution of stock awards into trust
 
$
1,651

 
1,881

 
1,537

Distribution of stock held in trust
 
$
1,898

 
4

 
201

See accompanying notes to consolidated financial statements.



67



REGENCY CENTERS, L.P.
Consolidated Balance Sheets
December 31, 2015 and 2014
(in thousands, except unit data)
    
 
 
2015
 
2014
Assets
 
 
 
 
Real estate investments at cost (notes 2 and 3):
 
 
 
 
Land
 
$
1,432,468

 
1,380,211

Buildings and improvements
 
2,896,396

 
2,790,137

Properties in development
 
217,036

 
239,538

 
 
4,545,900

 
4,409,886

Less: accumulated depreciation
 
1,043,787

 
933,708

 
 
3,502,113

 
3,476,178

Investments in real estate partnerships (note 4)
 
306,206

 
333,167

Net real estate investments
 
3,808,319

 
3,809,345

Cash and cash equivalents
 
36,856

 
113,776

Restricted cash
 
3,767

 
8,013

Accounts receivable, net of allowance for doubtful accounts of $5,295 and $4,523 at December 31, 2015 and 2014, respectively
 
32,292

 
30,999

Straight-line rent receivable, net of reserve of $1,365 and $652 at December 31, 2015 and 2014, respectively
 
63,392

 
55,768

Notes receivable (note 5)
 
10,480

 
12,132

Deferred costs, less accumulated amortization of $88,694 and $81,822 at December 31, 2015 and 2014, respectively
 
79,619

 
71,502

Acquired lease intangible assets, less accumulated amortization of $45,639 and $36,112 at December 31, 2015 and 2014, respectively (note 6)
 
105,380

 
52,365

Trading securities held in trust, at fair value (note 14)
 
29,093

 
28,134

Other assets
 
21,876

 
15,136

Total assets
 
$
4,191,074

 
4,197,170

Liabilities and Capital
 
 
 
 
Liabilities:
 
 
 
 
Notes payable (note 9)
 
$
1,707,478

 
1,946,357

Unsecured credit facilities (note 9)
 
165,000

 
75,000

Accounts payable and other liabilities
 
164,515

 
181,197

Acquired lease intangible liabilities, less accumulated accretion of $17,555 and $13,993 at December 31, 2015 and 2014, respectively (note 6)
 
42,034

 
32,143

Tenants’ security and escrow deposits and prepaid rent
 
29,427

 
25,991

Total liabilities
 
2,108,454

 
2,260,688

Commitments and contingencies (notes 16 and 17)
 

 

Capital:
 
 
 
 
Partners’ capital (notes 11 and 12):
 
 
 
 
Preferred units of general partner, $0.01 par value per unit, 13,000,000 units issued and outstanding at December 31, 2015 and 2014, respectively, liquidation preference of $25 per unit
 
325,000

 
325,000

General partner; 97,212,638 and 94,108,061 units outstanding at December 31, 2015 and 2014, respectively
 
1,787,802

 
1,639,340

Limited partners; 154,170 and 154,170 units outstanding at December 31, 2015 and 2014, respectively
 
(1,975
)
 
(1,914
)
Accumulated other comprehensive loss
 
(58,693
)
 
(57,748
)
Total partners’ capital
 
2,052,134

 
1,904,678

Noncontrolling interests (note 12):
 
 
 
 
Limited partners’ interests in consolidated partnerships
 
30,486

 
31,804

Total noncontrolling interests
 
30,486

 
31,804

Total capital
 
2,082,620

 
1,936,482

Total liabilities and capital
 
$
4,191,074

 
4,197,170

See accompanying notes to consolidated financial statements.

68



REGENCY CENTERS, L.P.
Consolidated Statements of Operations
For the years ended December 31, 2015, 2014, and 2013
(in thousands, except per unit data)
 
 
2015
 
2014
 
2013
Revenues:
 
 
 
 
 
 
Minimum rent
 
$
415,155

 
390,697

 
353,833

Percentage rent
 
3,750

 
3,488

 
3,583

Recoveries from tenants and other income
 
125,295

 
119,618

 
106,494

Management, transaction, and other fees
 
25,563

 
24,095

 
25,097

Total revenues
 
569,763

 
537,898

 
489,007

Operating expenses:
 
 
 
 
 
 
Depreciation and amortization
 
146,829

 
147,791

 
130,630

Operating and maintenance
 
82,978

 
77,788

 
71,018

General and administrative
 
65,600

 
60,242

 
61,234

Real estate taxes
 
61,855

 
59,031

 
53,726

Other operating expenses
 
7,836

 
8,496

 
8,079

Total operating expenses
 
365,098

 
353,348

 
324,687

Other expense (income):
 
 
 
 
 
 
Interest expense, net of interest income of $1,590, $1,210, and $1,643 in 2015, 2014, and 2013, respectively (note 9)
 
102,622

 
109,491

 
108,966

Provision for impairment
 

 
1,257

 
6,000

Early extinguishment of debt
 
8,239

 
18

 
32

Net investment income, including unrealized losses (gains) of $1,734, $1,058, and $(2,231) in 2015, 2014, and 2013, respectively (notes 8 and 14)
 
(625
)
 
(9,449
)
 
(3,257
)
Gain on remeasurement of investment in real estate partnership
 

 
(18,271
)
 

Total other expense (income)
 
110,236

 
83,046

 
111,741

Income from operations before equity in income of investments in real estate partnerships
 
94,429

 
101,504

 
52,579

Equity in income of investments in real estate partnerships (note 4)
 
22,508

 
31,270

 
31,718

Income tax (benefit) of taxable REIT subsidiary
 

 
(996
)
 

Income from operations
 
116,937

 
133,770

 
84,297

Discontinued operations, net (note 3):
 
 
 
 
 
 
Operating income
 

 

 
7,332

Gain on sale of operating properties, net of tax
 

 

 
57,953

Income from discontinued operations
 

 

 
65,285

Gain on sale of real estate
 
35,606

 
55,077

 
1,703

Net income
 
152,543

 
188,847

 
151,285

Limited partners’ interests in consolidated partnerships
 
(2,247
)
 
(1,138
)
 
(1,205
)
Net income attributable to the Partnership
 
150,296

 
187,709

 
150,080

Preferred unit distributions
 
(21,062
)
 
(21,062
)
 
(21,062
)
Net income attributable to common unit holders
 
$
129,234

 
166,647

 
129,018

Income per common unit - basic (note 15):
 
 
 
 
 
 
Continuing operations
 
$
1.37

 
1.80

 
0.69

Discontinued operations
 

 

 
0.71

Net income attributable to common unit holders
 
$
1.37

 
1.80

 
1.40

Income per common unit - diluted (note 15):
 
 
 
 
 
 
Continuing operations
 
$
1.36

 
1.80

 
0.69

Discontinued operations
 

 

 
0.71

Net income attributable to common unit holders
 
$
1.36

 
1.80

 
1.40

See accompanying notes to consolidated financial statements.

69



REGENCY CENTERS, L.P.
Consolidated Statements of Comprehensive Income
For the years ended December 31, 2015, 2014, and 2013
(in thousands)
 
 
2015
 
2014
 
2013
Net income
 
$
152,543

 
188,847

 
151,285

Other comprehensive income:
 
 
 
 
 
 
Effective portion of change in fair value of derivative instruments:
 
 
 
 
 
 
Effective portion of change in fair value of derivative instruments
 
(10,089
)
 
(49,968
)
 
30,985

Less: reclassification adjustment of derivative instruments included in net income
 
9,152

 
9,353

 
9,433

Available for sale securities
 
 
 
 
 
 
Unrealized (loss) gain on available-for-sale securities
 
(43
)
 
7,765

 

Less: realized gains on sale of available-for-sale securities recognized in net income
 

 
(7,765
)
 

Other comprehensive income
 
(980
)
 
(40,615
)
 
40,418

Comprehensive income
 
151,563

 
148,232

 
191,703

Less: comprehensive (loss) income attributable to noncontrolling interests:
 
 
 
 
 
 
Net income attributable to noncontrolling interests
 
2,247

 
1,138

 
1,205

Other comprehensive (loss) income attributable to noncontrolling interests
 
(33
)
 
(201
)
 
32

Comprehensive income attributable to noncontrolling interests
 
2,214

 
937

 
1,237

Comprehensive income attributable to the Partnership
 
$
149,349

 
147,295

 
190,466

See accompanying notes to consolidated financial statements.


70




REGENCY CENTERS, L.P.
Consolidated Statements of Capital
For the years ended December 31, 2015, 2014, and 2013 
 (in thousands)
 
 
General Partner
Preferred and
Common Units
 
Limited
Partners
 
Accumulated
Other
Comprehensive
Loss
 
Total
Partners’
Capital
 
Noncontrolling
Interests in
Limited Partners’
Interest in
Consolidated
Partnerships
 
Total
Capital
Balance at December 31, 2012
$
1,788,480

 
(1,153
)
 
(57,715
)
 
1,729,612

 
16,299

 
1,745,911

Net income
 
149,804

 
276

 

 
150,080

 
1,205

 
151,285

Other comprehensive income
 

 
75

 
40,311

 
40,386

 
32

 
40,418

Contributions from partners
 

 

 

 

 
5,792

 
5,792

Distributions to partners
 
(168,848
)
 
(322
)
 

 
(169,170
)
 
(4,122
)
 
(173,292
)
Preferred unit distributions
 
(21,062
)
 

 

 
(21,062
)
 

 
(21,062
)
Restricted units issued as a result of amortization of restricted stock issued by Parent Company
 
14,141

 

 

 
14,141

 

 
14,141

Common units exchanged for common stock of the Parent Company
 
302

 
(302
)
 

 

 

 

Common units issued as a result of common stock issued by Parent Company, net of repurchases
 
97,941

 

 

 
97,941

 

 
97,941

Balance at December 31, 2013
$
1,860,758

 
(1,426
)
 
(17,404
)
 
1,841,928

 
19,206

 
1,861,134

Net income
 
187,390

 
319

 

 
187,709

 
1,138

 
188,847

Other comprehensive income
 

 
(70
)
 
(40,344
)
 
(40,414
)
 
(201
)
 
(40,615
)
Contributions from partners
 

 

 

 

 
16,204

 
16,204

Distributions to partners
 
(175,188
)
 
(300
)
 

 
(175,488
)
 
(4,543
)
 
(180,031
)
Redemption of preferred units
 

 
(300
)
 

 
(300
)
 

 
(300
)
Preferred unit distributions
 
(21,062
)
 

 


 
(21,062
)
 

 
(21,062
)
Restricted units issued as a result of amortization of restricted stock issued by Parent Company
 
12,161

 

 

 
12,161

 

 
12,161

Common units exchanged for common stock of the Parent Company
 
137

 
(137
)
 

 

 

 

Common units issued as a result of common stock issued by Parent Company, net of repurchases
 
100,144

 

 

 
100,144

 

 
100,144

Balance at December 31, 2014
$
1,964,340

 
(1,914
)
 
(57,748
)
 
1,904,678

 
31,804

 
1,936,482

Net income
 
150,056

 
240

 

 
150,296

 
2,247

 
152,543

Other comprehensive income
 

 
(2
)
 
(945
)
 
(947
)
 
(33
)
 
(980
)
Contributions from partners
 

 

 

 

 
717

 
717

Distributions to partners
 
(184,439
)
 
(299
)
 

 
(184,738
)
 
(4,249
)
 
(188,987
)

71



REGENCY CENTERS, L.P.
Consolidated Statements of Capital
For the years ended December 31, 2015, 2014, and 2013 
 (in thousands)
 
 
General Partner
Preferred and
Common Units
 
Limited
Partners
 
Accumulated
Other
Comprehensive
Loss
 
Total
Partners’
Capital
 
Noncontrolling
Interests in
Limited Partners’
Interest in
Consolidated
Partnerships
 
Total
Capital
Preferred unit distributions
 
(21,062
)
 

 

 
(21,062
)
 

 
(21,062
)
Restricted units issued as a result of amortization of restricted stock issued by Parent Company
 
13,869

 

 

 
13,869

 

 
13,869

Common units issued as a result of common stock issued by Parent Company, net of repurchases
 
190,038

 

 

 
190,038

 

 
190,038

Balance at December 31, 2015
$
2,112,802

 
(1,975
)
 
(58,693
)
 
2,052,134

 
30,486

 
2,082,620

See accompanying notes to consolidated financial statements.

72




REGENCY CENTERS, L.P.
Consolidated Statements of Cash Flows
For the years ended December 31, 2015, 2014, and 2013
(in thousands)

 
 
2015
 
2014
 
2013
Cash flows from operating activities:
 
 
 
 
 
 
Net income
 
$
152,543

 
188,847

 
151,285

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
Depreciation and amortization
 
146,829

 
147,791

 
134,454

Amortization of deferred loan cost and debt premium
 
9,677

 
10,521

 
12,339

Amortization and (accretion) of above and below market lease intangibles, net
 
(1,598
)
 
(3,101
)
 
(2,488
)
Stock-based compensation, net of capitalization
 
11,081

 
9,662

 
12,191

Equity in income of investments in real estate partnerships (note 4)
 
(22,508
)
 
(31,270
)
 
(31,718
)
Gain on remeasurement of investment in real estate partnership
 

 
(18,271
)
 

Gain on sale of real estate, net of tax
 
(35,606
)
 
(55,077
)
 
(59,656
)
Provision for impairment
 

 
1,257

 
6,000

Early extinguishment of debt
 
8,239

 
18

 
32

Distribution of earnings from operations of investments in real estate partnerships
 
46,646

 
42,767

 
45,377

Settlement of derivative instruments
 
(7,267
)
 
4,648

 

Gain on derivative instruments
 

 
(13
)
 
(19
)
Deferred compensation expense
 
207

 
1,386

 
3,294

Realized and unrealized gain on investments (note 8 and 14)
 
(626
)
 
(9,158
)
 
(3,293
)
Changes in assets and liabilities:
 
 
 
 
 
 
Restricted cash
 
1,926

 
848

 
(62
)
Accounts receivable
 
(11,965
)
 
(6,225
)
 
(5,042
)
Straight-line rent receivable, net
 
(8,231
)
 
(6,544
)
 
(5,459
)
Deferred leasing costs
 
(12,949
)
 
(8,252
)
 
(10,086
)
Other assets
 
(496
)
 
89

 
(1,866
)
Accounts payable and other liabilities
 
(3,810
)
 
6,201

 
(672
)
Tenants’ security and escrow deposits and prepaid rent
 
3,545

 
1,618

 
6,120

Net cash provided by operating activities
 
275,637

 
277,742

 
250,731

Cash flows from investing activities:
 
 
 
 
 
 
Acquisition of operating real estate
 
(42,983
)
 
(112,120
)
 
(107,790
)
Advance deposits on acquisition of operating real estate
 
(2,250
)
 

 

Real estate development and capital improvements
 
(205,103
)
 
(238,237
)
 
(213,282
)
Proceeds from sale of real estate investments
 
108,822

 
118,787

 
212,632

Collection of notes receivable
 
1,719

 

 
27,354

Investments in real estate partnerships (note 4)
 
(20,054
)
 
(23,577
)
 
(10,883
)
Distributions received from investments in real estate partnerships
 
23,801

 
37,152

 
87,111

Dividends on investments
 
243

 
243

 
194

Acquisition of securities
 
(31,941
)
 
(23,760
)
 
(19,144
)
Proceeds from sale of securities
 
28,400

 
31,222

 
13,991

Net cash used in investing activities
 
(139,346
)
 
(210,290
)
 
(9,817
)

73



REGENCY CENTERS, L.P.
Consolidated Statements of Cash Flows
For the years ended December 31, 2015, 2014, and 2013
(in thousands)

 
 
2015
 
2014
 
2013
Cash flows from financing activities:
 
 
 
 
 
 
Net proceeds from common units issued as a result of common stock issued by Parent Company
 
198,494

 
102,453

 
99,753

Proceeds from sale of treasury stock
 

 

 
34

     Redemption of preferred partnership units
 

 
(300
)
 

(Distributions to) contributions from limited partners in consolidated partnerships, net
 
(5,341
)
 
(5,303
)
 
1,514

Distributions to partners
 
(181,691
)
 
(172,900
)
 
(168,095
)
Distributions to preferred unit holders
 
(21,062
)
 
(21,062
)
 
(21,062
)
Repayment of fixed rate unsecured notes
 
(450,000
)
 
(150,000
)
 

Proceeds from issuance of fixed rate unsecured notes, net
 
248,160

 
248,705

 

Proceeds from unsecured credit facilities
 
445,000

 
255,000

 
82,000

Repayment of unsecured credit facilities
 
(355,000
)
 
(255,000
)
 
(177,000
)
Proceeds from notes payable
 
4,316

 
12,739

 
36,350

Repayment of notes payable
 
(76,168
)
 
(38,717
)
 
(27,960
)
Scheduled principal payments
 
(5,878
)
 
(6,909
)
 
(7,530
)
Payment of loan costs
 
(5,998
)
 
(3,066
)
 
(583
)
Early redemption costs
 
(8,043
)
 

 

Net cash used in financing activities
 
(213,211
)
 
(34,360
)
 
(182,579
)
Net (decrease) increase in cash and cash equivalents
 
(76,920
)
 
33,092

 
58,335

Cash and cash equivalents at beginning of the year
 
113,776

 
80,684

 
22,349

Cash and cash equivalents at end of the year
 
$
36,856

 
113,776

 
80,684

Supplemental disclosure of cash flow information:
 
 
 
 
 
 
Cash paid for interest (net of capitalized interest of $6,740, $7,142, and $6,078 in 2015, 2014, and 2013, respectively)
 
$
101,527

 
109,425

 
107,312

Cash paid for income taxes
 
$
1,015

 
2,169

 

Supplemental disclosure of non-cash transactions:
 
 
 
 
 
 
Common stock issued by Parent Company for partnership units exchanged
 
$

 
137

 
302

Real estate received through distribution in kind
 
$

 

 
7,576

Mortgage loans assumed through distribution in kind
 
$

 

 
7,500

Mortgage loans assumed for the acquisition of real estate
 
$
42,799

 
103,187

 

Unrealized gain (loss) on available-for-sale securities
 
$
(43
)
 

 

Initial fair value of non-controlling interest recorded at acquisition
 
$

 
15,385

 

Acquisition of previously unconsolidated real estate investments
 
$

 
16,182

 

Change in fair value of derivative instruments
 
$
(9,012
)
 
(49,968
)
 
30,952

Common stock issued by Parent Company for dividend reinvestment plan
 
$
1,250

 
1,184

 
1,075

Stock-based compensation capitalized
 
$
2,988

 
2,707

 
2,188

Contributions from limited partners in consolidated partnerships, net
 
$
13

 
1,579

 
156

Common stock issued for dividend reinvestment in trust
 
$
833

 
779

 
660

Contribution of stock awards into trust
 
$
1,651

 
1,881

 
1,537

Distribution of stock held in trust
 
$
1,898

 
4

 
201

See accompanying notes to consolidated financial statements.



74


REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015

1.
Summary of Significant Accounting Policies

(a)    Organization and Principles of Consolidation

General

Regency Centers Corporation (the “Parent Company”) began its operations as a Real Estate Investment Trust (“REIT”) in 1993 and is the general partner of Regency Centers, L.P. (the “Operating Partnership”). The Parent Company engages in the ownership, management, leasing, acquisition, and development of retail shopping centers through the Operating Partnership, and has no other assets or liabilities other than through its investment in the Operating Partnership. The Parent Company guarantees all of the unsecured debt and 21.4% of the secured debt of the Operating Partnership. As of December 31, 2015, the Parent Company, the Operating Partnership, and their controlled subsidiaries on a consolidated basis (the "Company” or “Regency”) directly owned 200 retail shopping centers and held partial interests in an additional 118 retail shopping centers through investments in real estate partnerships (also referred to as "joint ventures" or "co-investment partnerships").

Estimates, Risks, and Uncertainties

The preparation of the consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates in the Company's financial statements relate to the net carrying values of its real estate investments, accounts receivable, and straight line rent receivable. It is possible that the estimates and assumptions that have been utilized in the preparation of the consolidated financial statements could change significantly if economic conditions were to weaken.

Consolidation

The accompanying consolidated financial statements include the accounts of the Parent Company, the Operating Partnership, its wholly-owned subsidiaries, and consolidated partnerships in which the Company has a controlling interest. Investments in real estate partnerships not controlled by the Company are accounted for under the equity method. All significant inter-company balances and transactions are eliminated in the consolidated financial statements.

Ownership of the Parent Company

The Parent Company has a single class of common stock outstanding and two series of preferred stock outstanding (“Series 6 and 7 Preferred Stock”). The dividends on the Series 6 and 7 Preferred Stock are cumulative and payable in arrears quarterly.

Ownership of the Operating Partnership

The Operating Partnership's capital includes general and limited common Partnership Units. As of December 31, 2015, the Parent Company owned approximately 99.8% or 97,212,638 of the 97,366,808 outstanding common Partnership Units of the Operating Partnership. Net income and distributions of the Operating Partnership are allocable to the general and limited common Partnership Units in accordance with their ownership percentages.

Investments in Real Estate Partnerships

Investments in real estate partnerships not controlled by the Company are accounted for under the equity method. The accounting policies of the real estate partnerships are consistent with the Company's accounting policies. Income or loss from these real estate partnerships, which includes all operating results (including impairment losses) and gains on sales of properties within the joint ventures, is allocated to the Company in

75

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015




accordance with the respective partnership agreements. Such allocations of net income or loss are recorded in equity in income of investments in real estate partnerships in the accompanying Consolidated Statements of Operations. The net difference in the carrying amount of investments in real estate partnerships and the underlying equity in net assets is either accreted to income and recorded in equity in income of investments in real estate partnerships in the accompanying Consolidated Statements of Operations over the expected useful lives of the properties and other intangible assets, which range in lives from 10 to 40 years, or recognized at liquidation if the joint venture agreement includes a unilateral right to elect to dissolve the real estate partnership and, upon such an election, receive a distribution in-kind, as discussed further below.
Cash distributions of earnings from operations from investments in real estate partnerships are presented in cash flows provided by operating activities in the accompanying Consolidated Statements of Cash Flows. Cash distributions from the sale of a property or loan proceeds received from the placement of debt on a property included in investments in real estate partnerships are presented in cash flows provided by investing activities in the accompanying Consolidated Statements of Cash Flows.

The Company evaluates the structure and the substance of its investments in the real estate partnerships to determine if they are variable interest entities. The Company has concluded that these partnership investments are not variable interest entities. Further, the joint venture partners in the real estate partnerships have significant ownership rights, including approval over operating budgets and strategic plans, capital spending, sale or financing, and admission of new partners. Upon formation of the joint ventures, the Company, through the Operating Partnership, also became the managing member, responsible for the day-to-day operations of the real estate partnerships. In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, the Company evaluated its investment in each real estate partnership and concluded that the other partners have kick-out rights and/or substantive participating rights and, therefore, the Company has concluded that the equity method of accounting is appropriate for these investments and they do not require consolidation. Under the equity method of accounting, investments in real estate partnerships are initially recorded at cost, subsequently increased for additional contributions and allocations of income, and reduced for distributions received and allocations of loss. These investments are included in the consolidated financial statements as investments in real estate partnerships.

Noncontrolling Interests

The Company consolidates all entities in which it has a controlling ownership interest. A controlling ownership interest is typically attributable to the entity with a majority voting interest. Noncontrolling interest is the portion of equity, in a subsidiary or consolidated entity, not attributable, directly or indirectly to the Company. Such noncontrolling interests are reported on the Consolidated Balance Sheets within equity or capital, but separately from stockholders' equity or partners' capital. On the Consolidated Statements of Operations, all of the revenues and expenses from less-than-wholly-owned consolidated subsidiaries are reported in net income, including both the amounts attributable to the Company and noncontrolling interests. The amounts of consolidated net income attributable to the Company and to the noncontrolling interests are clearly identified on the accompanying Consolidated Statements of Operations.

Noncontrolling Interests of the Parent Company

The consolidated financial statements of the Parent Company include the following ownership interests held by owners other than the preferred and common stockholders of the Parent Company: (i) the limited Partnership Units in the Operating Partnership held by third parties (“Exchangeable operating partnership units”) and (ii) the minority-owned interest held by third parties in consolidated partnerships (“Limited partners' interests in consolidated partnerships”). The Parent Company has included all of these noncontrolling interests in permanent equity, separate from the Parent Company's stockholders' equity, in the accompanying Consolidated Balance Sheets and Consolidated Statements of Equity and Comprehensive Income (Loss). The portion of net income or comprehensive income attributable to these noncontrolling interests is included in net income and comprehensive income in the accompanying Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Loss) of the Parent Company.

In accordance with the FASB ASC Topic 480, securities that are redeemable for cash or other assets at the option of the holder, not solely within the control of the issuer, are classified as redeemable noncontrolling interests outside of permanent equity in the Consolidated Balance Sheets. The Parent Company has evaluated the conditions as specified under the FASB ASC Topic 480 as it relates to exchangeable operating partnership

76

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015




units outstanding and concluded that it has the right to satisfy the redemption requirements of the units by delivering unregistered common stock. Each outstanding exchangeable operating partnership unit is exchangeable for one share of common stock of the Parent Company, and the unit holder cannot require redemption in cash or other assets. Limited partners' interests in consolidated partnerships are not redeemable by the holders. The Parent Company also evaluated its fiduciary duties to itself, its shareholders, and, as the managing general partner of the Operating Partnership, to the Operating Partnership, and concluded its fiduciary duties are not in conflict with each other or the underlying agreements. Therefore, the Parent Company classifies such units and interests as permanent equity in the accompanying Consolidated Balance Sheets and Consolidated Statements of Equity.

Noncontrolling Interests of the Operating Partnership

The Operating Partnership has determined that limited partners' interests in consolidated partnerships are noncontrolling interests. The Operating Partnership has included these noncontrolling interests in permanent capital, separate from partners' capital, in the accompanying Consolidated Balance Sheets and Consolidated Statements of Capital. The portion of net income (loss) or comprehensive income (loss) attributable to these noncontrolling interests is included in net income and comprehensive income in the accompanying Consolidated Statements of Operations and Consolidated Statements Comprehensive Income (Loss) of the Operating Partnership.

(b)    Revenues and Accounts Receivable

Leasing Revenue and Receivables

The Company leases space to tenants under agreements with varying terms. Leases are accounted for as operating leases with minimum rent recognized on a straight-line basis over the term of the lease regardless of when payments are due. The Company estimates the collectibility of the accounts receivable related to base rents, straight-line rents, expense reimbursements, and other revenue taking into consideration the Company's historical write-off experience, tenant credit-worthiness, current economic trends, and remaining lease terms.

The Company recorded the following provisions for doubtful accounts:
 
Year ended December 31,
(in thousands)
2015
 
2014
 
2013
Gross provision for doubtful accounts
$
2,364

 
2,192

 
1,841

Amount included in discontinued operations

 

 
53


The following table represents the components of accounts receivable, net of allowance for doubtful accounts, in the accompanying Consolidated Balance Sheets:
 
December 31,
(in thousands)
2015
 
2014
Billed tenant receivables
$
14,521

 
10,583

Accrued CAM, insurance and tax reimbursements
12,358

 
15,369

Other receivables
10,708

 
9,570

Less: allowance for doubtful accounts
(5,295
)
 
(4,523
)
Total accounts receivable, net
$
32,292

 
30,999


More than half of all of the lease agreements with anchor tenants contain provisions that provide for additional rents based on tenants' sales volume ("percentage rent"). Percentage rents are recognized when the tenants achieve the specified targets as defined in their lease agreements. Substantially all lease agreements contain provisions for reimbursement of the tenants' share of real estate taxes, insurance and common area maintenance (“CAM”) costs. Recovery of real estate taxes, insurance, and CAM costs are recognized as the respective costs are incurred in accordance with the lease agreements.

77

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015





As part of the leasing process, the Company may provide the lessee with an allowance for the construction of leasehold improvements. These leasehold improvements are capitalized and recorded as tenant improvements, and depreciated over the shorter of the useful life of the improvements or the remaining lease term. If the allowance represents a payment for a purpose other than funding leasehold improvements, or in the event the Company is not considered the owner of the improvements, the allowance is considered to be a lease incentive and is recognized over the lease term as a reduction of minimum rent. Factors considered during this evaluation include, among other things, who holds legal title to the improvements as well as other controlling rights provided by the lease agreement and provisions for substantiation of such costs (e.g. unilateral control of the tenant space during the build-out process). Determination of the appropriate accounting for the payment of a tenant allowance is made on a lease-by-lease basis, considering the facts and circumstances of the individual tenant lease. When the Company is the owner of the leasehold improvements, recognition of lease revenue commences when the lessee is given possession of the leased space upon completion of tenant improvements. However, when the leasehold improvements are owned by the tenant, the lease inception date is the date the tenant obtains possession of the leased space for purposes of constructing its leasehold improvements.

Real Estate Sales

Profits from sales of real estate are recognized under the full accrual method by the Company when: (i) a sale is consummated; (ii) the buyer's initial and continuing investment is adequate to demonstrate a commitment to pay for the property; (iii) the Company's receivable, if applicable, is not subject to future subordination; (iv) the Company has transferred to the buyer the usual risks and rewards of ownership; and (v) the Company does not have substantial continuing involvement with the property.

The Company sells shopping centers to joint ventures in exchange for cash equal to the fair value of the ownership interest of its partners. The Company accounts for those sales as “partial sales” and recognizes gains on those partial sales in the period the properties were sold to the extent of the percentage interest sold, and in the case of certain real estate partnerships, applies a more restrictive method of recognizing gains, as discussed further below.

As of December 31, 2015, five of the Company's joint ventures (“DIK-JV”) give each partner the unilateral right to elect to dissolve the real estate partnership and, upon such an election, receive a distribution in-kind (“DIK”) of the assets of the real estate partnership equal to their respective capital account, which could include properties the Company previously sold to the real estate partnership.

Because the contingency associated with the possibility of receiving a particular property back upon liquidation is not satisfied at the property level, but at the aggregate level, no deferred gain is recognized on an individual property sold by the DIK-JV to a third party or received by the Company upon actual dissolution. Instead, the property received upon dissolution is recorded at the carrying value of the Company's investment in the DIK-JV on the date of dissolution. However, the deferred gain is recognized if and when all such properties in the DIK-JV are sold to a third party.

Management Services

The Company is engaged under agreements with its joint venture partners to provide asset management, property management, leasing, investing, and financing services for such joint ventures' shopping centers. The fees are market-based, generally calculated as a percentage of either revenues earned or the estimated values of the properties managed or the proceeds received, and are recognized as services are rendered, when fees due are determinable, and collectibility is reasonably assured. The Company also receives transaction fees, as contractually agreed upon with a joint venture, which include fees such as acquisition fees, disposition fees, “promotes”, or “earnouts”, which are recognized as services are rendered, when fees due are determinable, and collectibility is reasonably assured.



78

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015





(c)    Real Estate Investments
 
Capitalization and Depreciation

Maintenance and repairs that do not improve or extend the useful lives of the respective assets are recorded in operating and maintenance expense.

Depreciation is computed using the straight-line method over estimated useful lives of approximately 40 years for buildings and improvements, the shorter of the useful life or the remaining lease term subject to a maximum of 10 years for tenant improvements, and three to seven years for furniture and equipment.

Development Costs

Land, buildings, and improvements are recorded at cost. All specifically identifiable costs related to development activities are capitalized into properties in development on the accompanying Consolidated Balance Sheets. Properties in development are defined as properties that are in the construction or initial lease-up phase. The capitalized costs include pre-development costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes, and allocated direct employee costs incurred during the period of development. Interest costs are capitalized into each development project based upon applying the Company's weighted average borrowing rate to that portion of the actual development costs expended. The Company discontinues interest and real estate tax capitalization when the property is no longer being developed or is available for occupancy upon substantial completion of tenant improvements, but in no event would the Company capitalize interest on the project beyond 12 months after substantial completion of the building shell. 

Land held for future development represents projects not in construction, but identified and available for future development based on market demand for a new shopping center.

Pre-development costs represent the costs the Company incurs prior to land acquisition including contract deposits, as well as legal, engineering, and other external professional fees related to evaluating the feasibility of developing a shopping center. As of December 31, 2015 and 2014, the Company had refundable deposits of approximately $1.3 million and $375,000, respectively, included in pre-development costs. If the Company determines that the development of a particular shopping center is no longer probable, any related pre-development costs previously capitalized are immediately expensed. During the years ended December 31, 2015, 2014, and 2013, the Company expensed pre-development costs of approximately $1.7 million, $2.3 million, and $528,000, respectively, in other operating expenses in the accompanying Consolidated Statements of Operations.

Acquisitions

The Company and the real estate partnerships account for business combinations using the acquisition method by recognizing and measuring the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree at their acquisition date fair values. The Company expenses transaction costs associated with business combinations in the period incurred.

The Company's methodology includes estimating an “as-if vacant” fair value of the physical property, which includes land, building, and improvements. In addition, the Company determines the estimated fair value of identifiable intangible assets and liabilities, considering the following categories: (i) value of in-place leases, and (ii) above and below-market value of in-place leases. 

The value of in-place leases is estimated based on the value associated with the costs avoided in originating leases compared to the acquired in-place leases as well as the value associated with lost rental and recovery revenue during the assumed lease-up period. The value of in-place leases is recorded to amortization expense over the remaining expected term of the respective leases.


79

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015




Above-market and below-market in-place lease values for acquired properties are recorded based on the present value of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management's estimate of fair market lease rates for comparable in-place leases, measured over a period equal to the remaining non-cancelable term of the lease, including below-market renewal options, if applicable. The value of above-market leases is amortized as a reduction of minimum rent over the remaining terms of the respective leases and the value of below-market leases is accreted to minimum rent over the remaining terms of the respective leases, including below-market renewal options, if applicable. The Company does not assign value to customer relationship intangibles if it has pre-existing business relationships with the major retailers at the acquired property since they do not provide incremental value over the Company's existing relationships.

Held for Sale

The Company classifies an operating property or a property in development as held-for-sale upon satisfaction of the following criteria: (i) management commits to a plan to sell a property (or group of properties), (ii) the property is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such properties, (iii) an active program to locate a buyer and other actions required to complete the plan to sell the property have been initiated, (iv) the sale of the property is probable and transfer of the asset is expected to be completed within one year, (v) the property is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and (vi) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Operating properties held-for-sale are carried at the lower of cost or fair value less costs to sell.

Discontinued Operations

On January 1, 2014, the Company prospectively adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, and all sales will be recorded in accordance with the ASU. The amendments in the ASU change the requirements for reporting discontinued operations. Under the guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations.

Prior to January 1, 2014, when the Company sold a property or classified a property as held-for-sale and would not have significant continuing involvement in the operation of the property, the operations of the property were eliminated from ongoing operations and classified in discontinued operations.

Impairment

We evaluate whether there are any indicators, including property operating performance and general market conditions, that the value of the real estate properties (including any related amortizable intangible assets or liabilities) may not be recoverable. Through the evaluation, we compare the current carrying value of the asset to the estimated undiscounted cash flows that are directly associated with the use and ultimate disposition of the asset. Our estimated cash flows are based on several key assumptions, including rental rates, costs of tenant improvements, leasing commissions, anticipated hold period, and assumptions regarding the residual value upon disposition, including the exit capitalization rate. These key assumptions are subjective in nature and could differ materially from actual results. Changes in our disposition strategy or changes in the marketplace may alter the hold period of an asset or asset group which may result in an impairment loss and such loss could be material to the Company's financial condition or operating performance. To the extent that the carrying value of the asset exceeds the estimated undiscounted cash flows, an impairment loss is recognized equal to the excess of carrying value over fair value. If such indicators are not identified, management will not assess the recoverability of a property's carrying value. If a property previously classified as held and used is changed to held-for-sale, the Company estimates fair value, less expected costs to sell, which could cause the Company to determine that the property is impaired.

80

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015





The fair value of real estate assets is subjective and is determined through comparable sales information and other market data if available, or through use of an income approach such as the direct capitalization method or the traditional discounted cash flow approach. Such cash flow projections consider factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other factors, and therefore is subject to management judgment and changes in those factors could impact the determination of fair value. In estimating the fair value of undeveloped land, the Company generally uses market data and comparable sales information.

A loss in value of investments in real estate partnerships under the equity method of accounting, other than a temporary decline, must be recognized in the period in which the loss occurs. If management identifies indicators that the value of the Company's investment in real estate partnerships may be impaired, it evaluates the investment by calculating the fair value of the investment by discounting estimated future cash flows over the expected term of the investment.

Tax Basis

The net tax basis of the Company's real estate assets exceeds the book basis by approximately $183.9 million and $129.7 million at December 31, 2015 and 2014, respectively, primarily due to the property impairments recorded for book purposes and the cost basis of the assets acquired and their carryover basis recorded for tax purposes.

(d)    Cash and Cash Equivalents 

Any instruments which have an original maturity of 90 days or less when purchased are considered cash equivalents. As of December 31, 2015 and 2014, $3.8 million and $8.0 million, respectively, of cash was restricted through escrow agreements and certain mortgage loans.

(e)    Securities

The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. Debt securities are classified as held to maturity when the Company has the positive intent and ability to hold the securities to maturity. Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Debt and marketable equity securities not classified as held to maturity or as trading, are classified as available-for-sale, and are carried at fair value, with the unrealized gains and losses, net of tax, included in the determination of comprehensive income and reported in the Consolidated Statements of Comprehensive Income. The fair value of securities is determined using quoted market prices.

(f)    Deferred Costs 

Deferred costs include leasing costs and loan costs, net of accumulated amortization. Such costs are amortized over the periods through lease expiration or loan maturity, respectively. If the lease is terminated early, or if the loan is repaid prior to maturity, the remaining leasing costs or loan costs are written off. Deferred leasing costs consist of internal and external commissions associated with leasing the Company's shopping centers. The following table represents the components of deferred costs, net of accumulated amortization, in the accompanying Consolidated Balance Sheets:
 
December 31,
(in thousands)
2015
 
2014
Deferred leasing costs, net
$
66,367

 
60,889

Deferred loan costs, net
13,252

 
10,613

Total deferred costs, net
$
79,619

 
71,502



81

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015





(g)    Derivative Financial Instruments

The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or future payment of known and uncertain cash amounts, the amount of which are determined by interest rates. The Company's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company's known or expected cash payments principally related to the Company's borrowings.

All derivative instruments, whether designated in hedging relationships or not, are recorded on the accompanying Consolidated Balance Sheets at their fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

The Company uses interest rate swaps to mitigate its interest rate risk on a related financial instrument or forecasted transaction, and the Company designates these interest rate swaps as cash flow hedges. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The gains or losses resulting from changes in fair value of derivatives that qualify as cash flow hedges are recognized in other comprehensive income (“OCI”) while the ineffective portion of the derivative's change in fair value is recognized in the Statements of Operations as interest expense. Upon the settlement of a hedge, gains and losses remaining in OCI are amortized through earnings over the underlying term of the hedged transaction.

The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking various hedge transactions.  The Company assesses, both at inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the cash flows and/or forecasted cash flows of the hedged items.

In assessing the valuation of the hedges, the Company uses standard market conventions and techniques such as discounted cash flow analysis, option pricing models, and termination costs at each balance sheet date. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized.

The cash receipts or payments to settle interest rate swaps are presented in cash flows provided by operating activities in the accompanying Consolidated Statements of Cash Flows.

(h)    Income Taxes 

The Parent Company believes it qualifies, and intends to continue to qualify, as a REIT under the Internal Revenue Code (the “Code”). As a REIT, the Parent Company will generally not be subject to federal income tax, provided that distributions to its stockholders are at least equal to REIT taxable income. Regency Realty Group, Inc. (“RRG”), a wholly-owned subsidiary of the Operating Partnership, is a Taxable REIT Subsidiary (“TRS”) as defined in Section 856(l) of the Code. RRG is subject to federal and state income taxes and files separate tax returns. As a pass through entity, the Operating Partnership's taxable income or loss is reported

82

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015




by its partners, of which the Parent Company, as general partner and approximately 99.8% owner, is allocated its pro-rata share of tax attributes.

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates in effect for the year in which these temporary differences are expected to be recovered or settled.

Earnings and profits, which determine the taxability of dividends to stockholders, differs from net income reported for financial reporting purposes primarily because of differences in depreciable lives and cost bases of the shopping centers, as well as other timing differences.

Tax positions are initially recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions shall initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns and that its accruals for tax liabilities are adequate for all open tax years (2012 and forward for federal and state) based on an assessment of many factors including past experience and interpretations of tax laws applied to the facts of each matter.
  
(i)    Earnings per Share and Unit 

Basic earnings per share of common stock and unit are computed based upon the weighted average number of common shares and units, respectively, outstanding during the period. Diluted earnings per share and unit reflect the conversion of obligations and the assumed exercises of securities including the effects of shares issuable under the Company's share-based payment arrangements, if dilutive. Dividends paid on the Company's share-based compensation awards are not participating securities as they are forfeitable.

(j)    Stock-Based Compensation 

The Company grants stock-based compensation to its employees and directors. The Company recognizes stock-based compensation based on the grant-date fair value of the award and the cost of the stock-based compensation is expensed over the vesting period.

When the Parent Company issues common shares as compensation, it receives a like number of common units from the Operating Partnership. The Company is committed to contributing to the Operating Partnership all proceeds from the exercise of stock options or other share-based awards granted under the Parent Company's Long-Term Omnibus Plan (the “Plan”). Accordingly, the Parent Company's ownership in the Operating Partnership will increase based on the amount of proceeds contributed to the Operating Partnership for the common units it receives. As a result of the issuance of common units to the Parent Company for stock-based compensation, the Operating Partnership accounts for stock-based compensation in the same manner as the Parent Company.

(k)    Segment Reporting 

The Company's business is investing in retail shopping centers through direct ownership or through joint ventures. The Company actively manages its portfolio of retail shopping centers and may from time to time make decisions to sell lower performing properties or developments not meeting its long-term investment objectives. The proceeds from sales are reinvested into higher quality retail shopping centers, through acquisitions or new developments, which management believes will generate sustainable revenue growth and attractive returns. It is management's intent that all retail shopping centers will be owned or developed for investment purposes; however, the Company may decide to sell all or a portion of a development upon completion. The Company's revenues and net income are generated from the operation of its investment portfolio. The Company also earns fees for services provided to manage and lease retail shopping centers owned through joint ventures. 


83

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015




The Company's portfolio is located throughout the United States. Management does not distinguish or group its operations on a geographical basis for purposes of allocating resources or capital. The Company reviews operating and financial data for each property on an individual basis; therefore, the Company defines an operating segment as its individual properties. The individual properties have been aggregated into one reportable segment based upon their similarities with regard to both the nature and economics of the centers, tenants and operational processes, as well as long-term average financial performance.

(l)    Business Concentration

No single tenant accounts for 5% or more of revenue and none of the shopping centers are located outside the United States.

(m)    Fair Value of Assets and Liabilities

Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement is determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, the Company uses a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from independent sources (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the Company's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The three levels of inputs used to measure fair value are as follows:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access.

Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 - Unobservable inputs for the asset or liability, which are typically based on the Company's own assumptions, as there is little, if any, related market activity. 

The Company also remeasures nonfinancial assets and nonfinancial liabilities, initially measured at fair value in a business combination or other new basis event, at fair value in subsequent periods if a remeasurement event occurs.

(n)    Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue it expects to be entitled to for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP and will be effective for the Company on January 1, 2018, with adoption as early as January 1, 2017 permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures and has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.

In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Topic 205-40), which provides guidance on determining when and how reporting entities must disclose going concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of its ability to continue as a going concern within one year of the date of issuance of the entity's financial statements. The Company must provide certain disclosures if there is a "substantial doubt about the entity's ability to continue as a going concern." The standard becomes effective for annual periods ending after December 15, 2016 and interim and annual periods thereafter; early adoption is permitted. The Company will adopt the standard for the annual period ending December 31, 2016 and will not have a material impact on the Company's financial position or results of operations, but may result in additional disclosures.


84

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015




In November 2014, the FASB issued ASU 2014-16, “Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity(“ASU 2014-16”). ASU 2014-16 clarifies how current GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Entities commonly raise capital by issuing different classes of shares, including preferred stock, that entitle the holders to certain preferences and rights over the other shareholders. The specific terms of those shares may include conversion rights, redemption rights, voting rights, and liquidation and dividend payment preferences, among other features. One or more of those features may meet the definition of a derivative under GAAP. Shares that include such embedded derivative features are referred to as hybrid financial instruments. The objective of this update is to eliminate the use of different methods in practice and thereby reduce existing diversity under GAAP in the accounting for hybrid financial instruments issued in the form of a share. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. ASU 2014-16 is effective for fiscal years and interim periods beginning after December 15, 2015. We do not expect the adoption of ASU 2014-16 to have a material impact on our consolidated financial statements.

In February 2015, the FASB issued ASU No. 2015-02, Amendments to the Consolidation Analysis (Topic 810), which requires amendments to both the variable interest entity ("VIE") and voting models. The amendments (i) rescind the indefinite deferral of certain aspects of accounting standards relating to consolidations and provide a permanent scope exception for registered money market funds and similar unregistered money market funds, (ii) modify the identification of variable interests (fees paid to a decision maker or service provider), the VIE characteristics for a limited partnership or similar entity and primary beneficiary determination under the VIE model, and (iii) eliminate the presumption within the current voting model that a general partner controls a limited partnership or similar entity. The new guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2015 with early adoption permitted. The amendments may be applied using either a modified retrospective or full retrospective approach. The adoption of this standard during the first quarter of 2016 will not have a material impact on the Company's financial position or results of operations, but may result in additional disclosures.

In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30), which simplifies the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The amendments in this ASU are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years with early adoption permitted. The Company will adopt this ASU in the first quarter of 2016, which will result in a decrease to total assets and liabilities of the net unamortized balance of debt issuance costs, which is $8.2 million at December 31, 2015, exclusive of the line of credit costs. Debt issue costs related to the line of credit will remain in deferred costs.


2.
Real Estate Investments

Acquisitions
The following tables detail the shopping centers acquired or land acquired for development. The real estate operations acquired are not considered material to Company, individually or in the aggregate. Additionally, as of December 31, 2015, the Company had $2.3 million in deposits toward the potential acquisition of operating properties.
(in thousands)
 
Year ended December 31, 2015
Date Purchased
 
Property Name
 
City/State
 
Property Type
 
Purchase Price
 
Debt Assumed, Net of Premiums
 
Intangible Assets
 
Intangible Liabilities
9/1/2015
 
University Commons
 
Boca Raton, FL
 
Operating
 
$
80,500

 
42,799

 
64,482

 
14,039

10/9/2015
 
CityLine Market Ph II
 
Dallas, TX
 
Development
 
2,157

 

 

 

12/29/2015
 
Northgate Ph II
 
Medford, OR
 
Development
 
4,000

 

 

 

Total property acquisitions
 
$
86,657

 
42,799

 
64,482

 
14,039



85

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015




(in thousands)
 
Year ended December 31, 2014
Date Purchased
 
Property Name
 
City/State
 
Property Type
 
Purchase Price
 
Debt Assumed, Net of Premiums
 
Intangible Assets
 
Intangible Liabilities
1/31/2014
 
Persimmon Place
 
Dublin, CA
 
Development
 
$
14,200

 

 

 

2/14/2014
 
Shops at Mira Vista
 
Austin, TX
 
Operating
 
22,500

 
319

 
2,329

 
291

3/7/2014
 
Fairfield Portfolio (1)
 
Fairfield, CT
 
Operating
 
149,344

 
77,730

 
12,650

 
5,601

6/2/2014
 
Willow Oaks Crossing
 
Concord, NC
 
Development
 
3,342

 

 

 

7/15/2014
 
Clybourn Commons
 
Chicago, IL
 
Operating
 
19,000

 

 
1,686

 
3,298

9/10/2014
 
Belmont Chase
 
Ashburn, VA
 
Development
 
4,300

 

 

 

9/19/2014
 
CityLine Market
 
Dallas, TX
 
Development
 
4,913

 

 

 

10/24/2014
 
East San Marco (2)
 
Jacksonville, FL
 
Development
 
5,223

 

 

 

12/4/2014
 
The Village at La Floresta
 
Brea, CA
 
Development
 
6,750

 

 

 

12/16/2014
 
Indian Springs (3)
 
Houston, TX
 
Operating
 
53,156

 
25,138

 
3,867

 
1,612

Total property acquisitions
 
$
282,728

 
103,187

 
20,532

 
10,802


(1) On March 7, 2014, the Company acquired an 80% controlling interest in the Fairfield Portfolio, consisting of three operating properties located in Fairfield, CT. As a result of consolidation, the Company recorded the non-controlling interest of approximately $15.4 million at fair value.

(2) On October 24, 2014, Regency acquired the remaining 50% interest and gained control of this previously unconsolidated investment in real estate partnership that owns land for development. The $5.2 million purchase price includes the consideration paid to purchase the other partners interest as well as Regency's carrying value in the partnership.

(3) On December 16, 2014, Regency acquired the remaining 50% interest and gained control of this previously unconsolidated investment in real estate partnership that owns a single operating property. As the operating property constitutes a business, acquisition of control was accounted for as a step acquisition and the net assets acquired were recognized at fair value. A gain of $18.3 million was recognized upon remeasurement as the difference between the fair value, of $14.1 million, and the carrying value of the Company's previously held equity interest. The fair value was measured based on an income approach, using rental growth rate of 3.0%, a discount rate of 7.0%, and a terminal cap rate of 6.1%.

The following table details the weighted average amortization and net accretion periods of intangible assets and liabilities arising from acquisitions during:
 
 
Year ended December 31,
(in years)
 
2015
 
2014
Assets:
 
 
 
 
In-place leases
 
14.7
 
4.9
Above-market leases
 
12.3
 
3.9
Below-market ground leases
 
57.4
 
41.2
 
 
 
 
 
Liabilities:
 
 
 
 
Acquired lease intangible liabilities
 
18.1
 
12.7



86

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015





3.    Property Dispositions
               
Dispositions

The following table provides a summary of shopping centers and land out-parcels disposed of:
 
Year ended December 31,
(in thousands)
2015
 
2014
 
2013
Net proceeds from sale of real estate investments
$
108,822

 
118,787

 
212,632

Gain on sale of real estate
$
35,606

 
55,077

 
59,656

Number of operating properties sold
5
 
11
 
12
Number of land out-parcels sold
2
 
6
 
10

As a result of adopting ASU No. 2014-08, there were no discontinued operations for the years ended December 31, 2015 and 2014 as none of the sales during those years represented a strategic shift that would qualify as discontinued operations. Therefore, the following table provides a summary of revenues and expenses from properties included in discontinued operations for 2013 only:
 
Year ended December 31,
(in thousands)
 
2013
Revenues
 
$
14,924

Operating expenses
 
7,592

Operating income from discontinued operations
 
$
7,332


4.
Investments in Real Estate Partnerships

The Company invests in real estate partnerships, which consist of the following: 
 
December 31, 2015
(in thousands)
Regency's Ownership
 
Number of Properties
 
Total Investment
 
Total Assets of the Partnership
 
Net Income of the Partnership
 
The Company's Share of Net Income of the Partnership
GRI - Regency, LLC (GRIR) (1)
40.00%
 
73
 
$
220,099

 
1,744,017

 
45,761

 
18,148

Columbia Regency Retail Partners, LLC (Columbia I)
 (1)
20.00%
 
9
 
15,255

 
175,044

 
(1,396
)
 
(278
)
Columbia Regency Partners II, LLC (Columbia II) (1)
20.00%
 
14
 
8,496

 
290,064

 
3,794

 
755

Cameron Village, LLC (Cameron)
30.00%
 
1
 
11,857

 
100,124

 
2,195

 
643

RegCal, LLC (RegCal) (1)
25.00%
 
7
 
17,967

 
145,213

 
2,316

 
576

US Regency Retail I, LLC (USAA) (1)
20.01%
 
8
 
161

 
112,225

 
4,011

 
807

Other investments in real estate partnerships
50.00%
 
6
 
32,371

 
108,698

 
4,067

 
1,857

Total investments in real estate partnerships
 
 
118
 
$
306,206

 
2,675,385

 
60,748

 
22,508



87

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015




 
December 31, 2014
(in thousands)
Regency's Ownership
 
Number of Properties
 
Total Investment
 
Total Assets of the Partnership
 
Net Income of the Partnership
 
The Company's Share of Net Income of the Partnership
GRI - Regency, LLC (GRIR) (1)
40.00%
 
74
 
$
247,175

 
1,829,116

 
33,032

 
13,727

Columbia Regency Retail Partners, LLC (Columbia I)
(1)
20.00%
 
10
 
15,916

 
199,427

 
7,173

 
1,431

Columbia Regency Partners II, LLC (Columbia II) (1)
20.00%
 
14
 
9,343

 
300,028

 
1,211

 
233

Cameron Village, LLC (Cameron)
30.00%
 
1
 
12,114

 
100,625

 
3,393

 
1,008

RegCal, LLC (RegCal) (1)
25.00%
 
7
 
13,354

 
149,457

 
4,012

 
966

US Regency Retail I, LLC (USAA) (1)
20.01%
 
8
 
806

 
115,660

 
2,872

 
567

Other investments in real estate partnerships
50.00%
 
6
 
34,459

 
113,189

 
27,773

 
13,338

Total investments in real estate partnerships
 
 
120
 
$
333,167

 
2,807,502

 
79,466

 
31,270

(1) These partnership agreements have a unilateral right for election to dissolve the partnership and receive a DIK upon liquidation; therefore, the Company has applied the Restricted Gain Method to determine the amount of gain recognized on property sales to these partnerships. During 2015 and 2014, the Company did not sell any properties to these real estate partnerships, and accordingly, the Restricted Gain Method was not applied.


The summarized balance sheet information for the investments in real estate partnerships, on a combined basis, is as follows: 
 
 
December 31,
(in thousands)
 
2015
 
2014
Investments in real estate, net
 
$
2,497,770

 
2,620,583

Acquired lease intangible assets, net
 
43,469

 
50,763

Other assets
 
134,146

 
136,156

Total assets
 
$
2,675,385

 
2,807,502

 
 
 
 
 
Notes payable
 
$
1,401,977

 
1,462,790

Acquired lease intangible liabilities, net
 
23,826

 
28,991

Other liabilities
 
66,061

 
67,093

Capital - Regency
 
414,681

 
442,050

Capital - Third parties
 
768,840

 
806,578

Total liabilities and capital
 
$
2,675,385

 
2,807,502


The following table reconciles the Company's capital recorded by the unconsolidated partnerships to the Company's investments in real estate partnerships reported in the accompanying consolidated balance sheet:
 
 
December 31,
(in thousands)
 
2015
 
2014
Capital - Regency
 
$
414,681

 
442,050

less: Impairment of investment in real estate partnerships
 
(1,300
)
 
(1,300
)
less: Ownership percentage or Restricted Gain Method deferral
 
(28,972
)
 
(29,380
)
less: Net book equity in excess of purchase price
 
(78,203
)
 
(78,203
)
Investments in real estate partnerships
 
$
306,206

 
333,167



88

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015




The revenues and expenses for the investments in real estate partnerships, on a combined basis, are summarized as follows: 
 
 
Year ended December 31,
(in thousands)
 
2015
 
2014
 
2013
Total revenues
 
$
363,745

 
361,103

 
378,670

Operating expenses:
 
 
 
 
 
 
Depreciation and amortization
 
111,648

 
117,780

 
125,363

Operating and maintenance
 
51,970

 
55,216

 
55,423

General and administrative
 
5,292

 
5,503

 
7,385

Real estate taxes
 
43,769

 
42,380

 
45,451

Other operating expenses
 
2,989

 
2,234

 
1,725

Total operating expenses
 
215,668

 
223,113

 
235,347

Other expense (income):
 
 
 
 
 
 
Interest expense, net
 
79,477

 
84,155

 
95,505

Gain on sale of real estate
 
(2,766
)
 
(28,856
)
 
(15,695
)
Provision for impairment
 
9,102

 
2,123

 

Early extinguishment of debt
 

 
114

 
(1,780
)
Preferred return on equity investment
 

 

 
(4,499
)
Other expense (income)
 
1,516

 
988

 
(1,258
)
Total other expense (income)
 
87,329

 
58,524

 
72,273

Net income of the Partnerships
 
$
60,748

 
79,466

 
71,050

The Company's share of net income of the Partnerships
 
$
22,508

 
31,270

 
31,718


Acquisitions

The following table provides a summary of shopping centers and land parcels acquired through our unconsolidated real estate partnerships, which had no acquisitions for the year ended December 31, 2015.
(in thousands)
 
Year ended December 31, 2014
Date Purchased
 
Property Name
 
City/State
 
Property Type
 
Co-investment Partner
 
Ownership %
 
Purchase Price
 
Debt Assumed, Net of Premiums
 
Intangible Assets
 
Intangible Liabilities
12/30/2014
 
Broadway
 
Seattle, WA
 
Operating
 
Columbia II
 
20.00%
 
$
43,000

 

 
7,604

 
3,487

Total property acquisitions
 
$
43,000

 

 
7,604

 
3,487


Dispositions

The following table provides a summary of shopping centers and land out-parcels disposed of through our unconsolidated real estate partnerships:
 
 
Year ended December 31,
(in thousands)
 
2015
 
2014
 
2013
Proceeds from sale of real estate investments
 
$
39,459

 
88,106

 
145,295

Gain on sale of real estate
 
$
2,766

 
28,856

 
15,695

The Company's share of gain on sale of real estate
 
$
1,108

 
13,615

 
3,847

Number of operating properties sold
 
2
 
6
 
15
Number of land out-parcels sold
 
0
 
2
 
3




89

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015




Notes Payable

Scheduled principal repayments on notes payable held by our unconsolidated investments in real estate partnerships as of December 31, 2015 were as follows: 
Scheduled Principal Payments and Maturities by Year:
 
Scheduled
Principal
Payments
 
Mortgage Loan
Maturities
 
Unsecured
Maturities
 
Total
 
Regency’s
Pro-Rata
Share
2016
 
$
16,614

 
84,875

 

 
101,489

 
37,238

2017
 
17,517

 
77,385

 
9,760

 
104,662

 
23,874

2018
 
18,696

 
67,022

 

 
85,718

 
27,655

2019
 
17,934

 
65,939

 

 
83,873

 
21,618

2020
 
14,826

 
222,199

 

 
237,025

 
85,506

Beyond 5 Years
 
20,001

 
770,424

 

 
790,425

 
295,357

Unamortized debt premiums (discounts), net
 

 
(1,215
)
 

 
(1,215
)
 
(488
)
Total notes payable
 
$
105,588

 
1,286,629

 
9,760

 
1,401,977

 
490,760


These loans are all non-recourse. Maturities will be repaid from proceeds from refinancing and partner capital contributions. The Company is obligated to contribute its pro-rata share to fund maturities if the loans are not refinanced. The Company believes that its partners are financially sound and have sufficient capital or access thereto to fund future capital requirements.  In the event that a co-investment partner was unable to fund its share of the capital requirements of the co-investment partnership, the Company would have the right, but not the obligation, to loan the defaulting partner the amount of its capital call. 

Management fee income

In addition to earning our pro-rata share of net income or loss in each of these co-investment partnerships, we receive fees, as follows:
 
 
Year ended December 31,
(in thousands)
 
2015
 
2014
 
2013
Asset management, property management, leasing, and investment and financing services
 
$
24,519

 
22,983

 
24,153




5.
Notes Receivable
The Company had notes receivable of $10.5 million and $12.1 million at December 31, 2015 and 2014, respectively. The remaining single loan has a fixed interest rate of 7.0% with a maturity date of January 2019 and is secured by real estate held as collateral. 

90




6.
Acquired Lease Intangibles

The Company had the following acquired lease intangibles:
 
December 31,
(in thousands)
2015
 
2014
In-place leases
$
77,691

 
71,696

Above-market leases
14,841

 
15,020

Below-market ground leases
58,487

 
1,761

Total intangible assets
$
151,019


88,477

Accumulated amortization
(45,639
)
 
(36,112
)
Acquired lease intangible assets, net
$
105,380

 
52,365

 
 
 
 
Acquired lease intangible liabilities
$
59,589

 
46,136

Accumulated accretion
(17,555
)
 
(13,993
)
Acquired lease intangible liabilities, net
$
42,034

 
32,143


The following table provides a summary of amortization and net accretion amounts from acquired lease intangibles:
 
Year ended December 31,
 
 
(in thousands)
2015
 
2014
 
2013
 
Remaining Weighted Average Amortization/Accretion Period
(in years)
In-place lease amortization
$
9,141

 
10,365

 
7,441

 
6.2
Above-market lease amortization (1)
1,950

 
1,795

 
1,246

 
6.6
Below-market ground lease amortization (3)
351

 
23

 
22

 
58.2
Acquired lease intangible asset amortization
$
11,442

 
12,183

 
8,709

 
 
 
 
 
 
 
 
 
 
Acquired lease intangible liability accretion (2)(3)
$
4,155

 
4,590

 
3,726

 
13.2
(1) Amounts are recorded as a reduction to minimum rent.
(2) Amounts are recorded as an increase to minimum rent.
(3) Above and below market ground lease amortization and accretion are recorded as an offset to other operating expenses.
The estimated aggregate amortization and net accretion amounts from acquired lease intangibles for the next five years are as follows:
(in thousands)
 
 
 
  In Process Year Ending December 31,
Amortization Expense
 
Net Accretion
2016
$
10,293

 
4,181

2017
8,309

 
3,889

2018
6,899

 
3,395

2019
5,947

 
3,202

2020
5,055

 
3,033


91

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015




7.    Income Taxes
    
The following table summarizes the tax status of dividends paid on our common shares:
 
Year ended December 31,
 
2015
 
2014
 
2013
Dividend per share
$1.94
 
1.88
 
1.85
Ordinary income
71%
 
70%
 
70%
Capital gain
5%
 
16%
 
6%
Return of capital
19%
 
14%
 
—%
Qualified dividend income
5%
 
—%
 
24%

RRG is subject to federal and state income taxes and files separate tax returns. Income tax expense (benefit) differed from the amounts computed by applying the U.S. Federal income tax rate of 34% to pretax income of RRG, with all income tax (benefit) expense being current, as follows:
 
Year ended December 31,
(in thousands)
2015
 
2014
 
2013
Computed expected tax expense (benefit)
$
1,730

 
5,140

 
1,677

Increase (decrease) in income tax resulting from state taxes
224

 
(629
)
 
98

Valuation allowance
(3,556
)
 
(3,301
)
 
(1,511
)
All other items
(2
)
 
(58
)
 
(264
)
Income tax (benefit) expense attributable to continuing operations
$
(1,604
)
(1) 
1,152

(1) 

(1) Includes $1.6 million of tax benefit and $2.2 million of tax expense presented with Gain on sale of real estate, net of tax on the Consolidated Statements of Operations, during the years ended December 31, 2015 and 2014, respectively.

The following table represents the Company's net deferred tax assets recorded in accounts payable and other liabilities in the accompanying Consolidated Balance Sheets:
 
December 31,
(in thousands)
2015
 
2014
Deferred tax assets
 
 
 
Investments in real estate partnerships
$
1,676

 
8,427

Provision for impairment
6,242

 
3,299

Deferred interest expense
2,714

 
2,538

Capitalized costs under Section 263A
1,157

 
1,832

Employee benefits
148

 
385

Other
2,376

 
1,370

Deferred tax assets
14,313

 
17,851

Valuation allowance
(13,746
)
 
(17,302
)
Deferred tax assets, net
567

 
549

Deferred tax liabilities
 
 
 
Straight line rent
567

 
549

Deferred tax liabilities
567

 
549

Net deferred tax assets
$

 


During the years ended December 31, 2015 and 2014, the net change in the total valuation allowance was $3.6 million and $3.3 million, respectfully.

As of December 31, 2015, the projected future taxable income and unpredictable nature of potential property sales with built in losses within the TRS caused the Company to determine that it is still more likely than not that the net deferred tax assets will not be realized. As a result, the deferred tax asset continues to be fully reserved.

92

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015






8.    Available-for-Sale Securities

Available-for-sale securities consist of investments held by our wholly-owned captive insurance subsidiary, which is required to maintain statutory minimum capital and surplus; therefore our access to these securities may be limited. Available-for-sale securities are included in other assets in the accompanying Consolidated Balance Sheets, and consist of the following:
 
December 31, 2015
(in thousands)
Amortized Cost
 
Gains in Accumulated Other Comprehensive Loss
 
Losses in Accumulated Other Comprehensive Loss
 
Estimated Fair Value
Certificates of deposit
$
1,500

 
1

 

 
1,501

Corporate bonds
6,465

 

 
(44
)
 
6,421

 
$
7,965

 
1

 
(44
)
 
7,922

Realized gains or losses on investments are recorded in our consolidated statements of operations within other income. Upon the sale of a security classified as available-for-sale, the security’s specific unrealized gain (loss) is reclassified out of accumulated other comprehensive loss into earnings based on the specific identification method. There were no reclassifications from accumulated other comprehensive loss into earnings during the year ended December 31, 2015 and there were $7.8 million in 2014.

The contractual maturities of available-for sale securities were as follows, with none held at December 31, 2014:
 
December 31, 2015
(in thousands)
Less than 12 months
 
1-3 Years
 
Over 3 Years
 
Total
Certificates of deposit
$
1,251

 

 
250

 
1,501

Corporate bonds
251

 
4,121

 
2,049

 
6,421

 
$
1,502

 
4,121

 
2,299

 
7,922


During the year ended ended December 31, 2014, the Company acquired shares of AmREIT common stock for a total investment of $14.3 million. Subsequently during the year, Regency liquidated its equity position in AmREIT for total proceeds of $22.1 million and incurred $1.8 million of pursuit costs, which are recognized within other operating expenses in the accompanying Consolidated Statements of Operations.



93

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015





9.    Notes Payable and Unsecured Credit Facilities

The Company’s outstanding debt consists of the following:
 
December 31,
(in thousands)
2015
 
2014
Notes payable:
 
 
 
Fixed rate mortgage loans
$
477,022

 
518,993

Variable rate mortgage loans (1)
34,154

 
29,839

Fixed rate unsecured loans
1,196,302

 
1,397,525

Total notes payable
1,707,478

 
1,946,357

Unsecured credit facilities:
 
 
 
Line

 

Term Loan
165,000

 
75,000

Total unsecured credit facilities
165,000

 
75,000

Total debt outstanding
$
1,872,478

 
2,021,357

(1) An interest rate swap is in place to establish a fixed interest rate of 3.696% on $28.1 million of this variable rate mortgage for both periods. The underlying debt maintains a variable interest rate of 1 month LIBOR plus 150 basis points and matures October 16, 2020. See note 10.

Notes Payable

Notes payable consist of mortgage loans secured by properties and unsecured public debt. Mortgage loans may be prepaid, but could be subject to yield maintenance premiums. Mortgage loans are generally due in monthly installments of principal and interest or interest only, whereas, interest on unsecured public debt is payable semi-annually.

The Company is required to comply with certain financial covenants for its unsecured public debt as defined in the indenture agreements such as the following ratios: Consolidated Debt to Consolidated Assets, Consolidated Secured Debt to Consolidated Assets, Consolidated Income for Debt Service to Consolidated Debt Service, and Unencumbered Consolidated Assets to Unsecured Consolidated Debt. As of December 31, 2015, management of the Company believes it is in compliance with all financial covenants for its unsecured public debt.

As of December 31, 2015, the key terms of the Company's fixed rate notes payable are as follows:

 
 
 
 
Fixed Interest Rates
 
 
Maturing Through
 
Minimum
 
Maximum
 
Weighted Average
Secured mortgage loans
 
2032
 
3.30%
 
8.40%
 
6.10%
Unsecured public debt
 
2025
 
3.75%
 
6.00%
 
4.80%


Unsecured Credit Facilities

The Company has an unsecured line of credit commitment (the "Line") and an unsecured term loan commitment (the "Term Loan") under separate credit agreements with a syndicate of banks.

The Company is required to comply with certain financial covenants as defined in the Line and Term Loan credit agreements, such as Ratio of Indebtedness to Total Asset Value ("TAV"), Ratio of Unsecured Indebtedness to Unencumbered Asset Value, Ratio of Adjusted Earnings Before Interest Taxes Depreciation and Amortization (“EBITDA”) to Fixed Charges, Ratio of Secured Indebtedness to TAV, Ratio of Unencumbered Net Operating Income to Unsecured Interest Expense, and other covenants customary with this type of unsecured financing. As of December 31, 2015, management of the Company believes it is in compliance with all financial covenants for the Line and Term Loan.

94

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015





The key terms of the Line and Term Loan follow:
 
December 31, 2015
(in thousands)
Total Capacity
 
Remaining Capacity
 
Maturity
 
Variable Interest Rate (5)
 
Fee
 
Line
$
800,000

(1) 
$
794,100

(2) 
5/13/2019
(3) 
LIBOR plus 0.925 basis points
 
0.150%
(4) 
Term Loan
165,000

 

 
6/27/2019
 
LIBOR plus 0.975 basis points
 
$
35

(6) 
(1) The Company has the ability to increase the Line through an accordion feature to $1.0 billion.
(2) Borrowing capacity is reduced by the balance of outstanding borrowings and commitments under outstanding letters of credit.
(3) Maturity is subject to two six month extensions at the Company's option.
(4) The unused facility fee is subject to an adjustment based on the higher of the Company's corporate credit ratings from Moody's and S&P.
(5) Interest rate is subject to Regency maintaining its corporate credit and senior unsecured ratings at BBB.
(6) Annual fee.


Scheduled principal payments and maturities on notes payable and unsecured credit facilities were as follows: 
(in thousands)
December 31, 2015
Scheduled Principal Payments and Maturities by Year:
Scheduled
Principal
Payments
 
Mortgage Loan
Maturities
 
Unsecured
Maturities (1)
 
Total
2016
$
6,167

 
41,442

 

 
47,609

2017
5,778

 
117,298

 
300,000

 
423,076

2018
5,103

 
57,358

 

 
62,461

2019
4,130

 
106,000

 
165,000

 
275,130

2020
3,986

 
84,011

 
150,000

 
237,997

Beyond 5 Years
12,347

 
58,254

 
750,000

 
820,601

Unamortized debt premiums (discounts), net

 
9,302

 
(3,698
)
 
5,604

Total notes payable
$
37,511

 
473,665

 
1,361,302

 
1,872,478

(1) Includes unsecured public debt and unsecured credit facilities.




95

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015




10.    Derivative Financial Instruments

The following table summarizes the terms and fair values of the Company's derivative financial instruments, as well as their classification on the Consolidated Balance Sheets: 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value at December 31,
(in thousands)
 
 
 
 
 
 
 
 
 
Liabilities (2)
Effective Date
 
Maturity Date
 
Early Termination Date (1)
 
Notional Amount
 
Bank Pays Variable Rate of
 
Regency Pays Fixed Rate of
 
2015
 
2014
10/16/13
 
10/16/20
 
N/A
 
28,100

 
1 Month LIBOR
 
2.196%
 
$
(898
)
 
(764
)
8/1/15
 
8/1/25
 
2/1/16
(3) 
75,000

 
3 Month LIBOR
 
2.479%
 

 
(289
)
8/1/15
 
8/1/25
 
2/1/16
(3) 
50,000

 
3 Month LIBOR
 
2.479%
 

 
(193
)
8/1/15
 
8/1/25
 
2/1/16
(3) 
50,000

 
3 Month LIBOR
 
2.479%
 

 
(193
)
8/1/15
 
8/1/25
 
2/1/16
(3) 
45,000

 
3 Month LIBOR
 
3.412%
 

 
(3,964
)
6/15/17
 
6/15/27
 
12/15/17
 
20,000

 
3 Month LIBOR
 
3.488%
 
(1,798
)
 
(1,227
)
6/15/17
 
6/15/27
 
12/15/17
 
100,000

 
3 Month LIBOR
 
3.480%
 
(8,922
)
 
(6,080
)
6/15/17
 
6/15/27
 
12/15/17
 
100,000

 
3 Month LIBOR
 
3.480%
 
(8,921
)
 
(6,084
)
     Total derivative financial instruments
 
$
(20,539
)
 
(18,794
)
(1) Represents the date specified in the agreement for either optional or mandatory early termination which will result in cash settlement.
(2) Derivatives in an asset position are included within Other Assets in the accompanying Consolidated Balance Sheets, while those in a liability position are included within Accounts Payable and Other Liabilities.
(3) In connection with the issuance of $250.0 million of 3.9% fixed rate ten-year unsecured public debt in August 2015, the Company terminated and settled these swaps, resulting in cash payments of $7.3 million. The settlement value of these swaps will amortize through interest expense over the life of the debt.

These derivative financial instruments are all interest rate swaps, which are designated and qualify as cash flow hedges. The Company does not use derivatives for trading or speculative purposes and currently does not have any derivatives that are not designated as hedges. The Company has master netting agreements, however the Company does not have multiple derivatives subject to a single master netting agreement with the same counterparties. Therefore none are offset in the accompanying Consolidated Balance Sheets.
The Company expects to issue new debt in 2017. In order to mitigate the risk of interest rate volatility, the Company previously entered into $220 million of forward starting interest rate swaps to partially hedge the new debt expected to in 2017. These interest rate swaps lock in the 10-year treasury rate and swap spread at a weighted average fixed rate of 3.48%. A current market based credit spread applicable to Regency will be added to the locked in fixed rate at time of issuance that will determine the final bond yield.

The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in accumulated other comprehensive income (loss) ("AOCI") and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings within interest expense.


96

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015




The following table represents the effect of the derivative financial instruments on the accompanying consolidated financial statements:
Derivatives in FASB
ASC Topic 815 Cash
Flow Hedging
Relationships:
Amount of Gain (Loss)
Recognized in Other Comprehensive Loss on
Derivative (Effective
Portion)
 
Location and Amount of Gain (Loss)
Reclassified from
AOCI into
Income (Effective
Portion)
 
Location and Amount of Gain or
(Loss) Recognized in
Income on Derivative
(Ineffective Portion and
Amount Excluded from
Effectiveness Testing)
 
Year ended December 31,
 
 
 
Year ended December 31,
 
 
 
Year ended December 31,
(in thousands)
2015
 
2014
 
2013
 
 
 
2015
 
2014
 
2013
 
 
 
2015
 
2014
 
2013
Interest rate swaps
$
(10,089
)
 
(49,968
)
 
30,985

 
Interest expense
 
$
(9,152
)
 
(9,353
)
 
(9,433
)
 
Other expenses
 
$

 

 


As of December 31, 2015, the Company expects $9.2 million of net deferred losses on derivative instruments accumulated in other comprehensive income to be reclassified into earnings during the next 12 months, of which $8.3 million is related to previously settled swaps.

11.    Fair Value Measurements

(a) Disclosure of Fair Value of Financial Instruments

All financial instruments of the Company are reflected in the accompanying Consolidated Balance Sheets at amounts which, in management's estimation, reasonably approximates their fair values, except for the following:     
 
December 31,
 
2015
 
2014
(in thousands)
Carrying Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
Financial assets:
 
 
 
 
 
 
 
Notes receivable
$
10,480

 
10,620

 
$
12,132

 
11,980

Financial liabilities:
 
 
 
 
 
 
 
Notes payable
$
1,707,478

 
1,793,200

 
$
1,946,357

 
2,116,000

Unsecured credit facilities
$
165,000

 
165,300

 
$
75,000

 
75,000


The table above reflects carrying amounts in the accompanying Consolidated Balance Sheets under the indicated captions. The above fair values represent the amounts that would be received from selling those assets or that would be paid to transfer those liabilities in an orderly transaction between market participants as of December 31, 2015 and 2014. These fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Company's own judgments about the assumptions that market participants would use in pricing the asset or liability.

The Company develops its judgments based on the best information available at the measurement date, including expected cash flows, appropriately risk-adjusted discount rates, and available observable and unobservable inputs. Service providers involved in fair value measurements are evaluated for competency and qualifications on an ongoing basis. As considerable judgment is often necessary to estimate the fair value of these financial instruments, the fair values presented above are not necessarily indicative of amounts that will be realized upon disposition of the financial instruments.

The following methods and assumptions were used to estimate the fair value of these financial instruments:

Notes Receivable

The fair value of the Company's notes receivable is estimated by calculating the present value of future contractual cash flows discounted at interest rates available for notes of the same terms and maturities, adjusted for counter-party specific credit risk. The fair value of notes receivable was determined primarily using Level 3 inputs of the fair value hierarchy, which considered counter-party credit risk and loan to value ratio on the underlying property securing the note receivable.


97

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015




Notes Payable

The fair value of the Company's unsecured debt is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to the Company for debt of the same remaining maturities. The fair value of the unsecured debt was determined using Level 2 inputs of the fair value hierarchy.

The fair value of the Company's mortgage notes payable is estimated by discounting future cash flows of each instrument at rates that reflect the current market rates available to the Company for debt of the same terms and maturities. Fixed rate loans assumed in connection with real estate acquisitions are recorded in the accompanying consolidated financial statements at fair value at the time the property is acquired. The fair value of the mortgage notes payable was determined using Level 2 inputs of the fair value hierarchy.



98

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015





Unsecured Credit Facilities

The fair value of the Company's unsecured credit facilities is estimated based on the interest rates currently offered to the Company by financial institutions. The fair value of the credit facilities was determined using Level 2 inputs of the fair value hierarchy.

The following interest rates were used by the Company to estimate the fair value of its financial instruments:
 
 
December 31,
 
 
2015
 
2014
 
 
Low
 
High
 
Low
 
High
Notes receivable
 
6.3%
 
6.3%
 
7.4%
 
7.4%
Notes payable
 
2.8%
 
4.2%
 
0.9%
 
3.4%
Unsecured credit facilities
 
1.1%
 
1.1%
 
1.3%
 
1.3%

(b) Fair Value Measurements

The following financial instruments are measured at fair value on a recurring basis:

Trading Securities Held in Trust

The Company has investments in marketable securities, which are assets of the non-qualified deferred compensation plan ("NQDCP"), that are classified as trading securities held in trust on the accompanying Consolidated Balance Sheets. The fair value of the trading securities held in trust was determined using quoted prices in active markets, which are considered Level 1 inputs of the fair value hierarchy. Changes in the value of trading securities are recorded within net investment (income) loss from deferred compensation plan in the accompanying Consolidated Statements of Operations.

Available-for-Sale Securities

Available-for-sale securities consist of investments in certificates of deposit and corporate bonds, and are recorded at fair value using matrix pricing methods to estimate fair value, which are considered Level 2 inputs of the fair value hierarchy. Unrealized gains or losses on these securities are recognized through other comprehensive income.
 
Interest Rate Derivatives

The fair value of the Company's interest rate derivatives is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements.

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. The Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its interest rate swaps. As a result, the Company determined that its interest rate swaps valuation in its entirety is classified in Level 2 of the fair value hierarchy.


99

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015





The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis:
 
Fair Value Measurements as of December 31, 2015
 
 
 
Quoted Prices in Active Markets for Identical Assets
 
Significant Other Observable Inputs
 
Significant Unobservable Inputs
(in thousands)
Balance
 
(Level 1)
 
(Level 2)
 
(Level 3)
Assets:
 
 
 
 
 
 
 
Trading securities held in trust
$
29,093

 
29,093

 

 

Available-for-sale securities
7,922

 

 
7,922

 

Total
$
37,015

 
29,093

 
7,922

 

Liabilities:
 
 
 
 
 
 
 
Interest rate derivatives
$
(20,539
)
 

 
(20,539
)
 


 
Fair Value Measurements as of December 31, 2014
 
 
 
Quoted Prices in Active Markets for Identical Assets
 
Significant Other Observable Inputs
 
Significant Unobservable Inputs
(in thousands)
Balance
 
(Level 1)
 
(Level 2)
 
(Level 3)
Assets:
 
 
 
 
 
 
 
Trading securities held in trust
$
28,134

 
28,134

 

 

Liabilities:
 
 
 
 
 
 
 
Interest rate derivatives
$
(18,794
)
 

 
(18,794
)
 


During the year ended December 31, 2015, the Company recognized no impairment on long lived assets held while the Company recognized a $175,000 impairment on 2 parcels of land during the year ended December 31, 2014.


100

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015





12.    Equity and Capital
Preferred Stock of the Parent Company
Terms and conditions of the preferred stock outstanding are summarized as follows: 
 
 
Preferred Stock Outstanding as of December 31, 2015 and 2014
 
 
Date of Issuance
 
Shares Issued and Outstanding
 
Liquidation Preference
 
Distribution Rate
 
Callable By Company
Series 6
 
2/16/2012
 
10,000,000

 
$
250,000,000

 
6.625%
 
2/16/2017
Series 7
 
8/23/2012
 
3,000,000

 
75,000,000

 
6.000%
 
8/23/2017
 
 
 
 
13,000,000

 
$
325,000,000

 
 
 
 
The Series 6 and 7 preferred shares are perpetual, absent a change in control of the Parent Company, are not convertible into common stock of the Parent Company, and are redeemable at par upon the Company’s election beginning 5 years after the issuance date. None of the terms of the preferred stock contain any unconditional obligations that would require the Company to redeem the securities at any time or for any purpose.

Common Stock of the Parent Company

Issuances:

Under the Parent Company's March 2014 prospectus supplement filed with the Securities and Exchange Commission with respect to an ATM equity offering program, the Parent Company may sell up to $200.0 million of common stock at prices determined by the market at the time of sale. As of December 31, 2015, $83.3 million in common stock remained available for issuance under this ATM equity program.

The following table presents the shares that were issued under the ATM equity program:
 
Year ended December 31,
 
2015
 
2014
Shares issued
189,266

 
1,730,363

Weighted average price per share
$
67.86

 
60.00

Gross proceeds (in thousands)
$
12,843

 
103,821

Commissions (in thousands)
$
161

 
1,369


In January 2015, the Parent Company entered into a forward sale and an underwritten public offering of 2.875 million shares of its common stock at a price of $67.40 per share which resulted in net proceeds of $186.0 million upon settlement in November 2015.

Preferred Units of the Operating Partnership

Preferred units for the Parent Company are outstanding in relation to the Parent Company's preferred stock, as discussed above.
 
Common Units of the Operating Partnership

Issuances:

Common units were issued to the Parent Company in relation to the Parent Company's issuance of common stock, as discussed above.





101

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015





General Partner

The Parent Company, as general partner, owned the following Partnership Units outstanding:
 
 
December 31,
(in thousands)
 
2015
 
2014
Partnership units owned by the general partner
 
97,213

 
94,108

Total partnership units outstanding
 
97,367

 
94,262

Percentage of partnership units owned by the general partner
 
99.8%
 
99.8%

Limited Partners

The Operating Partnership had 154,170 limited Partnership Units outstanding as of December 31, 2015 and 2014.

Noncontrolling Interests of Limited Partners' Interests in Consolidated Partnerships

Limited partners’ interests in consolidated partnerships not owned by the Company are classified as noncontrolling interests on the accompanying Consolidated Balance Sheets of the Parent Company. Subject to certain conditions and pursuant to the conditions of the agreement, the Company has the right, but not the obligation, to purchase the other member’s interest or sell its own interest in these consolidated partnerships. As of December 31, 2015 and 2014, the noncontrolling interest in these consolidated partnerships was $30.5 million and $31.8 million, respectively.



102

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015





Accumulated Other Comprehensive Income (Loss)

The following table presents changes in the balances of each component of AOCI:
 
Controlling Interest
 
Noncontrolling Interest
 
Total
(in thousands)
Cash Flow Hedges
 
Unrealized gain (loss) on Available-For-Sale Securities
 
AOCI
 
Cash Flow Hedges
 
Unrealized gain (loss) on Available-For-Sale Securities
 
AOCI
 
AOCI
Balance as of December 31, 2012
$
(57,715
)
 

 
(57,715
)
 
(586
)
 

 
(586
)
 
(58,301
)
Other comprehensive income before reclassifications
30,879

 

 
30,879

 
106

 

 
106

 
30,985

Amounts reclassified from accumulated other comprehensive income
9,432

 

 
9,432

 
1

 

 
1

 
9,433

Current period other comprehensive income, net
40,311

 

 
40,311

 
107

 

 
107

 
40,418

Balance as of December 31, 2013
$
(17,404
)
 

 
(17,404
)
 
(479
)
 

 
(479
)
 
(17,883
)
Other comprehensive income before reclassifications
(49,524
)
 
7,752

 
(41,772
)
 
(444
)
 
13

 
(431
)
 
(42,203
)
Amounts reclassified from accumulated other comprehensive income
9,180

 
(7,752
)
 
1,428

 
173

 
(13
)
 
160

 
1,588

Current period other comprehensive income, net
(40,344
)
 

 
(40,344
)
 
(271
)
 

 
(271
)
 
(40,615
)
Balance as of December 31, 2014
$
(57,748
)
 

 
(57,748
)
 
(750
)
 

 
(750
)
 
(58,498
)
Other comprehensive income before reclassifications
(9,897
)
 
(43
)
 
(9,940
)
 
(192
)
 

 
(192
)
 
(10,132
)
Amounts reclassified from accumulated other comprehensive income
8,995

 

 
8,995

 
157

 

 
157

 
9,152

Current period other comprehensive income, net
(902
)
 
(43
)
 
(945
)
 
(35
)
 

 
(35
)
 
(980
)
Balance as of December 31, 2015
$
(58,650
)
 
(43
)
 
(58,693
)
 
(785
)
 

 
(785
)
 
(59,478
)

The following represents amounts reclassified out of AOCI into income:
AOCI Component
Amount Reclassified from AOCI into Income
 
Affected Line Item Where Net Income is Presented
 
Year ended December 31,
 
 
(in thousands)
2015
 
2014
 
2013
 
 
Interest rate swaps
$
9,152

 
9,353

 
9,433

 
Interest expense
Realized gains on sale of available-for-sale securities

 
(7,765
)
 

 
Net investment (income) loss


103

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015




13.    Stock-Based Compensation

The Company recorded stock-based compensation in general and administrative expenses in the accompanying Consolidated Statements of Operations, the components of which are further described below: 
 
Year ended December 31,
(in thousands)
2015
 
2014
 
2013
Restricted stock (1)
$
13,869

 
12,161

 
14,141

Directors' fees paid in common stock (1)
200

 
208

 
238

Capitalized stock-based compensation (2)
(2,988
)
 
(2,707
)
 
(2,188
)
Stock-based compensation, net of capitalization
$
11,081

 
9,662

 
12,191


(1) Includes amortization of the grant date fair value of restricted stock awards over the respective vesting periods.
(2) Includes compensation expense specifically identifiable to development and leasing activities.

The Company established its stock-based compensation plan (the "Plan") under which the Board of Directors may grant stock options and other stock-based awards to officers, directors, and other key employees. The Plan allows the Company to issue up to 4.1 million shares in the form of the Parent Company's common stock or stock options. As of December 31, 2015, there were 2.5 million shares available for grant under the Plan either through stock options or restricted stock.

Stock Option Awards

Stock options are granted under the Plan with an exercise price equal to the Parent Company's stock's price at the date of grant. All stock options granted have ten-year lives, contain vesting terms of one to five years from the date of grant and some have dividend equivalent rights. The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton closed-form (“Black-Scholes”) option valuation model. The Company believes that the use of the Black-Scholes model meets the fair value measurement objectives of FASB ASC Topic 718 and reflects all substantive characteristics of the instruments being valued. There were no stock options granted during the years ended December 31, 2015, 2014 or 2013. There were no stock options exercised, forfeited or expired during the year ended December 31, 2015.

The following table summarizes stock options outstanding: 
 
 
Year ended December 31, 2015
 
 
Number of Options
 
Weighted Average Exercise Price
 
Weighted Average Remaining Contractual Term (in years)
 
Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2014
 
8,741

 
$
88.45

 
2.1
 
$
(216
)
Outstanding of of December 31, 2015
 
8,741

 
$
88.45

 
1.1
 
$
(178
)
Vested and expected to vest as of December 31, 2015
 
8,741

 
$
88.45

 
1.1
 
$
(178
)
Exercisable as of December 31, 2015 (1)
 
8,741

 
$
88.45

 
1.1
 
$
(178
)

(1) The Company issues new shares to fulfill option exercises from its authorized shares available. The total intrinsic value of options exercised during the years ended December 31, 2014, and 2013 was approximately $1.3 million, and $141,000, respectively.

Restricted Stock Awards

The Company grants restricted stock under the Plan to its employees as a form of long-term compensation and retention. The terms of each restricted stock grant vary depending upon the participant's responsibilities and position within the Company. The Company's stock grants can be categorized as either time-based awards, performance-based awards, or market-based awards. All awards are valued at fair value, earn dividends throughout the vesting period, and have no voting rights. Fair value is measured using the grant date market price for all time-based or performance-based awards. Market based awards are valued using a Monte Carlo simulation to estimate the fair value based on the

104

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015




probability of satisfying the market conditions and the projected stock price at the time of payout, discounted to the valuation date over a three year performance period.  Assumptions include historic volatility over the previous three year period, risk-free interest rates, and Regency's historic daily return as compared to the market index. Since the award payout includes dividend equivalents and the total shareholder return includes the value of dividends, no dividend yield assumption is required for the valuation. Compensation expense is measured at the grant date and recognized on a straight-line basis over the requisite vesting period for the entire award.

The following table summarizes non-vested restricted stock activity: 
 
 
Year ended December 31, 2015
 
 
Number of Shares
 
Intrinsic Value (in thousands)
 
Weighted Average Grant Price
Non-vested as of December 31, 2014
 
676,366

 
 
 
 
Add: Time-based awards granted (1) (4)
 
119,714

 
 
 
$67.82
Add: Performance-based awards granted (2) (4)
 
8,760

 
 
 
$68.49
Add: Market-based awards granted (3) (4)
 
80,595

 
 
 
$72.89
Less: Vested and Distributed (5)
 
268,747

 
 
 
$69.17
Less: Forfeited
 
1,268

 
 
 
$59.71
Non-vested as of December 31, 2015 (6)
 
615,420

 
$41,922
 
 

(1) Time-based awards vest beginning on the first anniversary following the grant date over a three or four year service period. These grants are subject only to continued employment and are not dependent on future performance measures. Accordingly, if such vesting criteria are not met, compensation cost previously recognized would be reversed.

(2) Performance-based awards are earned subject to future performance measurements. Once the performance criteria are achieved and the actual number of shares earned is determined, shares vest over a required service period. The Company considers the likelihood of meeting the performance criteria based upon management's estimates from which it determines the amounts recognized as expense on a periodic basis.

(3) Market-based awards are earned dependent upon the Company's total shareholder return in relation to the shareholder return of a NAREIT index over a three-year period. Once the performance criteria are met and the actual number of shares earned is determined, the shares are immediately vested and distributed. The probability of meeting the criteria is considered when calculating the estimated fair value on the date of grant using a Monte Carlo simulation. These awards are accounted for as awards with market criteria, with compensation cost recognized over the service period, regardless of whether the performance criteria are achieved and the awards are ultimately earned. The significant assumptions underlying determination of fair values for market-based awards granted were as follows:
 
 
Year ended December 31,
 
 
2015
 
2014
 
2013
Volatility
 
17.10%
 
24.60%
 
27.80%
Risk free interest rate
 
0.78%
 
0.64%
 
0.42%

(4) The weighted-average grant price for restricted stock granted during the years ended December 31, 2015, 2014, and 2013 was $69.80, $48.18, and $52.80, respectively.

(5) The total intrinsic value of restricted stock vested during the years ended December 31, 2015, 2014, and 2013 was $18.6 million, $12.4 million, and $11.5 million, respectively.

(6) As of December 31, 2015, there was $12.0 million of unrecognized compensation cost related to non-vested restricted stock granted under the Parent Company's Long-Term Omnibus Plan. When recognized, this compensation results in additional paid in capital in the accompanying Consolidated Statements of Equity of the Parent Company and in general partner preferred and common units in the accompanying Consolidated Statements of Capital of the Operating Partnership. This unrecognized compensation cost is expected to be recognized over the next three years. The Company issues new restricted stock from its authorized shares available at the date of grant.

105

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015





14.    Saving and Retirement Plans

401(k) Retirement Plan

The Company maintains a 401(k) retirement plan covering substantially all employees, which permits participants to defer up to the maximum allowable amount determined by the IRS of their eligible compensation. This deferred compensation, together with Company matching contributions equal to 100% of employee deferrals up to a maximum of $5,000 of their eligible compensation, is fully vested and funded as of December 31, 2015. Additionally, an annual profit sharing contribution is made, which vests over a three year period. Costs for Company contributions to the plan totaled $3.1 million, $2.8 million and $2.7 million for the years ended December 31, 2015, 2014, and 2013, respectively.

Non-Qualified Deferred Compensation Plan

The Company maintains a non-qualified deferred compensation plan (“NQDCP”), which allows select employees and directors to defer part or all of their cash bonus, director fees, and restricted stock awards. All contributions into the participants' accounts are fully vested upon contribution to the NQDCP and are deposited in a Rabbi trust.

The following table reflects the balances of the assets and deferred compensation liabilities of the Rabbi trust in the accompanying Consolidated Balance Sheets:
Non Qualified Deferred Compensation Plan Component (1)
Year ended December 31,
(in thousands)
2015
 
2014
Assets:
 
 
 
Trading securities held in trust
$
29,093

 
28,134

Liabilities:
 
 
 
Accounts payable and other liabilities
$
28,632

 
27,621

(1) Assets and liabilities of the Rabbi trust are exclusive of the shares of the Company's common stock.

Realized and unrealized gains and losses on trading securities are recognized within income from deferred compensation plan in the accompanying Consolidated Statements of Operations. Changes in participant obligations, which is based on changes in the value of their investment elections, is recognized within general and administrative expenses within the accompanying Consolidated Statements of Operations.

Investments in shares of the Company's common stock are included, at cost, as treasury stock in the accompanying Consolidated Balance Sheets of the Parent Company and as a reduction of general partner capital in the accompanying Consolidated Balance Sheets of the Operating Partnership. The participant's deferred compensation liability attributable to the participants' investments in shares of the Company's common stock are included, at cost, within additional paid in capital in the accompanying Consolidated Balance Sheets of the Parent Company and as a reduction of general partner capital in the accompanying Consolidated Balance Sheets of the Operating Partnership. Changes in participant account balances related to the Regency common stock fund are recorded directly within stockholders' equity.

106

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015





15.    Earnings per Share and Unit
Parent Company Earnings per Share
The following summarizes the calculation of basic and diluted earnings per share: 
 
 
Year ended December 31,
(in thousands, except per share data)
 
2015
 
2014
 
2013
Numerator:
 
 
 
 
 
 
Continuing Operations
 
 
 
 
 
 
Income from operations
 
$
116,937

 
133,770

 
84,297

Gain on sale of real estate
 
35,606

 
55,077

 
1,703

Less: income attributable to noncontrolling interests
 
2,487

 
1,457

 
1,360

Income from continuing operations attributable to the Company
 
150,056

 
187,390

 
84,640

Less: preferred stock dividends and other
 
21,062

 
21,515

 
21,510

Income from continuing operations attributable to common stockholders - basic
 
$
128,994

 
165,875

 
63,130

Income from continuing operations attributable to common stockholders - diluted
 
$
128,994

 
165,938

 
63,175

Discontinued Operations
 
 
 
 
 
 
Income from discontinued operations
 

 

 
65,285

Less: income from discontinued operations attributable to noncontrolling interests
 

 

 
121

Income from discontinued operations attributable to the Company
 

 

 
65,164

Net Income
 
 
 
 
 
 
Net income attributable to common stockholders - basic
 
128,994

 
165,875

 
128,294

Net income attributable to common stockholders - diluted
 
$
128,994

 
165,938

 
128,339

Denominator:
 
 
 
 
 
 
Weighted average common shares outstanding for basic EPS
 
94,391

 
92,370

 
91,383

Weighted average common shares outstanding for diluted EPS
 
94,856

 
92,404

 
91,409

Income per common share – basic
 
 
 
 
 
 
Continuing operations
 
$
1.37

 
1.80

 
0.69

Discontinued operations
 

 

 
0.71

Net income (loss) attributable to common stockholders
 
$
1.37

 
1.80

 
1.40

Income per common share – diluted
 
 
 
 
 
 
Continuing operations
 
$
1.36

 
1.80

 
0.69

Discontinued operations
 

 

 
0.71

Net income (loss) attributable to common stockholders
 
$
1.36

 
1.80

 
1.40


Income allocated to noncontrolling interests of the Operating Partnership has been excluded from the numerator and exchangeable Operating Partnership units have been omitted from the denominator for the purpose of computing diluted earnings per share since the effect of including these amounts in the numerator and denominator would have no impact. Weighted average exchangeable Operating Partnership units outstanding for the years ended December 31, 2015, 2014, and 2013 were 154,170, 157,950, and 171,886, respectively.

107

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015




Operating Partnership Earnings per Unit
The following summarizes the calculation of basic and diluted earnings per unit: 
 
 
Year ended December 31,
(in thousands, except per share data)
 
2015
 
2014
 
2013
Numerator:
 
 
 
 
 
 
Continuing Operations
 
 
 
 
 
 
Income from operations
 
$
116,937

 
133,770

 
84,297

Gain on sale of real estate
 
35,606

 
55,077

 
1,703

Less: income attributable to noncontrolling interests
 
2,247

 
1,138

 
1,084

Income from continuing operations attributable to the Partnership
 
150,296

 
187,709

 
84,916

Less: preferred unit distributions and other
 
21,062

 
21,515

 
21,510

Income from continuing operations attributable to common unit holders - basic
 
129,234

 
166,194

 
63,406

Income from continuing operations attributable to common unit holders - diluted
 
129,234

 
166,257

 
63,451

Discontinued Operations
 
 
 
 
 
 
Income from discontinued operations
 

 

 
65,285

Less: income from discontinued operations attributable to noncontrolling interests
 

 

 
121

Income from discontinued operations attributable to the Partnership
 

 

 
65,164

Net Income
 
 
 
 
 
 
Net income attributable to common unit holders - basic
 
129,234

 
166,194

 
128,570

Net income attributable to common unit holders - diluted
 
$
129,234

 
166,257

 
128,615

Denominator:
 
 
 
 
 
 
Weighted average common units outstanding for basic EPU
 
94,546

 
92,528

 
91,555

Weighted average common units outstanding for diluted EPU
 
95,011

 
92,562

 
91,581

Income (loss) per common unit – basic
 
 
 
 
 
 
Continuing operations
 
$
1.37

 
1.80

 
0.69

Discontinued operations
 

 

 
0.71

Net income (loss) attributable to common unit holders
 
$
1.37

 
1.80

 
1.40

Income (loss) per common unit – diluted
 
 
 
 
 
 
Continuing operations
 
$
1.36

 
1.80

 
0.69

Discontinued operations
 

 

 
0.71

Net income (loss) attributable to common unit holders

$
1.36

 
1.80

 
1.40



108

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015




16.    Operating Leases
    
The Company's properties are leased to tenants under operating leases. Our leases for tenant space under 5,000 square feet generally have terms ranging from three to five years. Leases greater than 10,000 square feet generally have lease terms in excess of five years, mostly comprised of anchor tenants. Many of the anchor leases contain provisions allowing the tenant the option of extending the term of the lease at expiration. Future minimum rents under non-cancelable operating leases as of December 31, 2015, excluding both tenant reimbursements of operating expenses and additional percentage rent based on tenants' sales volume, are as follows:
  In Process Year Ending December 31,
 
Future Minimum Rents (in thousands)
2016
 
$
414,025

2017
 
372,266

2018
 
323,354

2019
 
278,450

2020
 
228,796

Thereafter
 
1,037,783

Total
 
$
2,654,674


The shopping centers' tenant base primarily includes national and regional supermarkets, drug stores, discount department stores, and other retailers and, consequently, the credit risk is concentrated in the retail industry. There were no tenants that individually represented more than 5% of the Company's annualized future minimum rents.

The Company has shopping centers that are subject to non-cancelable, long-term ground leases where a third party owns and has leased the underlying land to the Company to construct and/or operate a shopping center. Ground leases expire through the year 2101, and in most cases, provide for renewal options. In addition, the Company has non-cancelable operating leases pertaining to office space from which it conducts its business. Office leases expire through the year 2027, and in most cases, provide for renewal options. Leasehold improvements are capitalized, recorded as tenant improvements, and depreciated over the shorter of the useful life of the improvements or the lease term.

Operating lease expense, including capitalized ground lease payments on properties in development, was $9.5 million, $8.9 million, and $8.5 million for the years ended December 31, 2015, 2014, and 2013, respectively. The following table summarizes the future obligations under non-cancelable operating leases as of December 31, 2015:

  In Process Year Ending December 31,
 
Future Obligations (in thousands)
2016
 
$
8,450

2017
 
7,599

2018
 
7,374

2019
 
7,106

2020
 
6,393

Thereafter
 
253,900

Total
 
$
290,822


17.    Commitments and Contingencies

The Company is involved in litigation on a number of matters and is subject to certain claims, which arise in the normal course of business, none of which, in the opinion of management, is expected to have a material adverse effect on the Company's consolidated financial position, results of operations, or liquidity. Legal fees are expensed as incurred.

The Company is also subject to numerous environmental laws and regulations as they apply to real estate pertaining to chemicals used by the dry cleaning industry, the existence of asbestos in older shopping centers, and underground petroleum storage tanks. The Company believes that the ultimate disposition of currently known environmental matters will not have a material effect on its financial position, liquidity, or operations; however, it can give no assurance that existing environmental studies with respect to the shopping centers have revealed all potential

109

REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Notes to Consolidated Financial Statements
December 31, 2015




environmental liabilities; that any previous owner, occupant or tenant did not create any material environmental condition not known to it; that the current environmental condition of the shopping centers will not be affected by tenants and occupants, by the condition of nearby properties, or by unrelated third parties; or that changes in applicable environmental laws and regulations or their interpretation will not result in additional environmental liability to the Company.

The Company has the right to issue letters of credit under the Line up to an amount not to exceed $50.0 million, which reduces the credit availability under the Line. These letters of credit are primarily issued as collateral to facilitate the construction of development projects. As of December 31, 2015 and 2014, the Company had $5.9 million in letters of credit outstanding.

18.    Summary of Quarterly Financial Data (Unaudited)

The following table summarizes selected Quarterly Financial Data for the Company on a historical basis for the years ended December 31, 2015 and 2014:
(in thousands except per share and per unit data)
 
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
Year ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Data:
 
 
 
 
 
 
 
 
Revenue
 
$
140,399

 
141,129

 
142,068

 
146,167

 
 
 
 
 
 
 
 
 
Net income attributable to common stockholders
 
$
25,174

 
32,480

 
53,731

 
17,609

Net income attributable to exchangeable operating partnership units
 
49

 
61

 
94

 
36

Net income attributable to common unit holders
 
$
25,223

 
32,541

 
53,825

 
17,645

 
 
 
 
 
 
 
 
 
Net income attributable to common stock and unit holders per share and unit:
 
 
 
 
 
 
Basic
 
$
0.27

 
0.35

 
0.57

 
0.18

Diluted
 
$
0.27

 
0.34

 
0.57

 
0.18

 
 
 
 
 
 
 
 
 
Year ended December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Data:
 
 
 
 
 
 
 
 
Revenue
 
$
133,280

 
134,892

 
133,559

 
136,167

 
 
 
 
 
 
 
 
 
Net income attributable to common stockholders
 
$
19,389

 
25,482

 
47,942

 
73,515

Net income attributable to exchangeable operating partnership units
 
42

 
53

 
90

 
134

Net income attributable to common unit holders
 
$
19,431

 
25,535

 
48,032

 
73,649

 
 
 
 
 
 
 
 
 
Net income attributable to common stock and unit holders per share and unit:
 
 
 
 
 
 
Basic
 
$
0.21

 
0.28

 
0.52

 
0.79

Diluted
 
$
0.21

 
0.28

 
0.52

 
0.79



110



REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Schedule III - Consolidated Real Estate and Accumulated Depreciation
December 31, 2015
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial Cost
 
 
 
Total Cost
 
 
 
Net Cost
 
 
Shopping Centers (1)
 
 Land
 
 Building & Improvements
 
 Cost Capitalized
 Subsequent to
 Acquisition (2)
 
 Land
 
 Building & Improvements
 
 Total
 
 Accumulated Depreciation
 
 Net of Accumulated Depreciation
 
 Mortgages
4S Commons Town Center
 
$
30,760

 
35,830

 
797

 
30,812

 
36,575

 
67,387

 
18,476

 
48,911

 
62,500

Airport Crossing
 
1,748

 
1,690

 
156

 
1,744

 
1,850

 
3,594

 
885

 
2,709

 

Amerige Heights Town Center
 
10,109

 
11,288

 
440

 
10,109

 
11,728

 
21,837

 
3,317

 
18,520

 
16,349

Anastasia Plaza
 
9,065

 

 
470

 
3,338

 
6,197

 
9,535

 
1,653

 
7,882

 

Ashburn Farm Market Center
 
9,835

 
4,812

 
145

 
9,835

 
4,957

 
14,792

 
3,810

 
10,982

 

Ashford Perimeter
 
2,584

 
9,865

 
879

 
2,584

 
10,744

 
13,328

 
6,412

 
6,916

 

Augusta Center
 
5,142

 
2,720

 
(5,632
)
 
1,366

 
864

 
2,230

 
436

 
1,794

 

Aventura Shopping Center
 
2,751

 
10,459

 
30

 
2,751

 
10,489

 
13,240

 
10,330

 
2,910

 

Balboa Mesa Shopping Center
 
23,074

 
33,838

 
13,857

 
27,765

 
43,004

 
70,769

 
5,496

 
65,273

 

Belleview Square
 
8,132

 
9,756

 
2,358

 
8,323

 
11,923

 
20,246

 
6,105

 
14,141

 

Berkshire Commons
 
2,295

 
9,551

 
1,905

 
2,965

 
10,786

 
13,751

 
6,804

 
6,947

 
7,500

Blackrock
 
22,251

 
20,815

 
132

 
22,251

 
20,946

 
43,197

 
1,787

 
41,410

 
19,828

Bloomingdale Square
 
3,940

 
14,912

 
2,081

 
3,940

 
16,993

 
20,933

 
7,997

 
12,936

 

Boulevard Center
 
3,659

 
10,787

 
1,188

 
3,659

 
11,975

 
15,634

 
5,872

 
9,762

 

Boynton Lakes Plaza
 
2,628

 
11,236

 
4,606

 
3,606

 
14,864

 
18,470

 
5,692

 
12,778

 

Brentwood Plaza
 
2,788

 
3,473

 
286

 
2,788

 
3,759

 
6,547

 
836

 
5,711

 

Briarcliff La Vista
 
694

 
3,292

 
461

 
694

 
3,753

 
4,447

 
2,442

 
2,005

 

Briarcliff Village
 
4,597

 
24,836

 
1,164

 
4,597

 
26,000

 
30,597

 
15,674

 
14,923

 

Brickwalk
 
25,299

 
41,995

 
183

 
25,299

 
42,178

 
67,477

 
2,639

 
64,838

 
31,514

Bridgeton
 
3,033

 
8,137

 
107

 
3,067

 
8,210

 
11,277

 
1,528

 
9,749

 

Brighten Park
 
3,983

 
18,687

 
2,162

 
3,926

 
20,906

 
24,832

 
11,241

 
13,591

 

Buckhead Court
 
1,417

 
7,432

 
835

 
1,417

 
8,267

 
9,684

 
5,271

 
4,413

 

Buckley Square
 
2,970

 
5,978

 
836

 
2,970

 
6,814

 
9,784

 
3,520

 
6,264

 

Buckwalter Place Shopping Ctr
 
6,563

 
6,590

 
498

 
6,783

 
6,868

 
13,651

 
3,058

 
10,593

 

Caligo Crossing
 
2,459

 
4,897

 
144

 
2,546

 
4,954

 
7,500

 
2,064

 
5,436

 

Cambridge Square
 
774

 
4,347

 
725

 
774

 
5,072

 
5,846

 
2,768

 
3,078

 

Carmel Commons
 
2,466

 
12,548

 
4,737

 
3,422

 
16,329

 
19,751

 
7,570

 
12,181

 

Carriage Gate
 
833

 
4,974

 
2,782

 
1,302

 
7,287

 
8,589

 
4,730

 
3,859

 

Centerplace of Greeley III
 
6,661

 
11,502

 
1,621

 
5,690

 
14,094

 
19,784

 
4,225

 
15,559

 

Chasewood Plaza
 
4,612

 
20,829

 
4,737

 
6,511

 
23,667

 
30,178

 
13,365

 
16,813

 

Cherry Grove
 
3,533

 
15,862

 
2,286

 
3,533

 
18,148

 
21,681

 
8,133

 
13,548

 

Clayton Valley Shopping Center
 
24,189

 
35,422

 
2,261

 
24,538

 
37,334

 
61,872

 
18,678

 
43,194

 


111



REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Schedule III - Consolidated Real Estate and Accumulated Depreciation
December 31, 2015
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial Cost
 
 
 
Total Cost
 
 
 
Net Cost
 
 
Shopping Centers (1)
 
 Land
 
 Building & Improvements
 
 Cost Capitalized
 Subsequent to
 Acquisition (2)
 
 Land
 
 Building & Improvements
 
 Total
 
 Accumulated Depreciation
 
 Net of Accumulated Depreciation
 
 Mortgages
Clybourn Commons
 
15,056

 
5,594

 
118

 
15,056

 
5,712

 
20,768

 
458

 
20,310

 

Cochran's Crossing
 
13,154

 
12,315

 
848

 
13,154

 
13,163

 
26,317

 
8,208

 
18,109

 

Corkscrew Village
 
8,407

 
8,004

 
171

 
8,407

 
8,175

 
16,582

 
2,726

 
13,856

 
7,642

Cornerstone Square
 
1,772

 
6,944

 
1,145

 
1,772

 
8,089

 
9,861

 
4,576

 
5,285

 

Corvallis Market Center
 
6,674

 
12,244

 
388

 
6,696

 
12,610

 
19,306

 
4,124

 
15,182

 

Costa Verde Center
 
12,740

 
26,868

 
1,609

 
12,798

 
28,419

 
41,217

 
13,910

 
27,307

 

Courtyard Landcom
 
5,867

 
4

 
3

 
5,867

 
7

 
5,874

 
1

 
5,873

 

Culpeper Colonnade
 
15,944

 
10,601

 
4,876

 
16,258

 
15,163

 
31,421

 
6,911

 
24,510

 

Dardenne Crossing
 
4,194

 
4,005

 
253

 
4,343

 
4,109

 
8,452

 
1,056

 
7,396

 

Delk Spectrum
 
2,985

 
12,001

 
1,444

 
3,000

 
13,430

 
16,430

 
6,392

 
10,038

 

Diablo Plaza
 
5,300

 
8,181

 
1,123

 
5,300

 
9,304

 
14,604

 
4,243

 
10,361

 

Dunwoody Village
 
3,342

 
15,934

 
3,219

 
3,342

 
19,153

 
22,495

 
11,360

 
11,135

 

East Pointe
 
1,730

 
7,189

 
1,997

 
1,937

 
8,979

 
10,916

 
4,331

 
6,585

 

East Washington Place
 
15,993

 
40,151

 
1,570

 
15,509

 
42,205

 
57,714

 
4,992

 
52,722

 

El Camino Shopping Center
 
7,600

 
11,538

 
1,154

 
7,600

 
12,692

 
20,292

 
5,338

 
14,954

 

El Cerrito Plaza
 
11,025

 
27,371

 
859

 
11,025

 
28,230

 
39,255

 
7,278

 
31,977

 
37,989

El Norte Parkway Plaza
 
2,834

 
7,370

 
3,198

 
3,263

 
10,139

 
13,402

 
4,118

 
9,284

 

Encina Grande
 
5,040

 
11,572

 
(107
)
 
5,040

 
11,465

 
16,505

 
8,180

 
8,325

 

Fairfax Shopping Center
 
15,239

 
11,367

 
(5,539
)
 
13,175

 
7,892

 
21,067

 
2,107

 
18,960

 

Fairfield
 
6,731

 
29,420

 
432

 
6,731

 
29,852

 
36,583

 
1,793

 
34,790

 

Falcon
 
1,340

 
4,168

 
162

 
1,340

 
4,330

 
5,670

 
1,607

 
4,063

 

Fellsway Plaza
 
30,712

 
7,327

 
5,913

 
32,982

 
10,970

 
43,952

 
1,671

 
42,281

 
34,154

Fenton Marketplace
 
2,298

 
8,510

 
(8,307
)
 
512

 
1,989

 
2,501

 
417

 
2,084

 

Fleming Island
 
3,077

 
11,587

 
2,771

 
3,111

 
14,324

 
17,435

 
6,004

 
11,431

 

Fountain Square
 
29,650

 
28,286

 
208

 
29,650

 
28,494

 
58,144

 
1,624

 
56,520

 

French Valley Village Center
 
11,924

 
16,856

 
111

 
11,822

 
17,069

 
28,891

 
9,223

 
19,668

 

Friars Mission Center
 
6,660

 
28,021

 
1,244

 
6,660

 
29,265

 
35,925

 
12,430

 
23,495

 

Gardens Square
 
2,136

 
8,273

 
444

 
2,136

 
8,717

 
10,853

 
4,228

 
6,625

 

Gateway 101
 
24,971

 
9,113

 
26

 
24,971

 
9,139

 
34,110

 
3,163

 
30,947

 

Gateway Shopping Center
 
52,665

 
7,134

 
2,240

 
52,671

 
9,368

 
62,039

 
10,790

 
51,249

 

Gelson's Westlake Market Plaza
 
3,157

 
11,153

 
372

 
3,157

 
11,525

 
14,682

 
4,913

 
9,769

 

Glen Oak Plaza
 
4,103

 
12,951

 
475

 
4,103

 
13,426

 
17,529

 
2,492

 
15,037

 


112



REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Schedule III - Consolidated Real Estate and Accumulated Depreciation
December 31, 2015
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial Cost
 
 
 
Total Cost
 
 
 
Net Cost
 
 
Shopping Centers (1)
 
 Land
 
 Building & Improvements
 
 Cost Capitalized
 Subsequent to
 Acquisition (2)
 
 Land
 
 Building & Improvements
 
 Total
 
 Accumulated Depreciation
 
 Net of Accumulated Depreciation
 
 Mortgages
Glenwood Village
 
1,194

 
5,381

 
278

 
1,194

 
5,659

 
6,853

 
3,704

 
3,149

 

Golden Hills Plaza
 
12,699

 
18,482

 
2,815

 
12,054

 
21,942

 
33,996

 
5,777

 
28,219

 

Grand Ridge Plaza
 
24,208

 
61,033

 
3,053

 
24,879

 
63,415

 
88,294

 
7,731

 
80,563

 
11,125

Hancock
 
8,232

 
28,260

 
1,272

 
8,232

 
29,532

 
37,764

 
13,895

 
23,869

 

Harpeth Village Fieldstone
 
2,284

 
9,443

 
516

 
2,284

 
9,959

 
12,243

 
4,425

 
7,818

 

Harris Crossing
 
7,199

 
3,677

 
(13
)
 
7,152

 
3,711

 
10,863

 
1,827

 
9,036

 

Heritage Land
 
12,390

 

 
(453
)
 
11,937

 

 
11,937

 

 
11,937

 

Heritage Plaza
 

 
26,097

 
13,672

 
278

 
39,491

 
39,769

 
14,150

 
25,619

 

Hershey
 
7

 
808

 
7

 
7

 
815

 
822

 
326

 
496

 

Hibernia Pavilion
 
4,929

 
5,065

 
11

 
4,929

 
5,076

 
10,005

 
2,087

 
7,918

 

Hibernia Plaza
 
267

 
230

 
(3
)
 
267

 
227

 
494

 
70

 
424

 

Hickory Creek Plaza
 
5,629

 
4,564

 
276

 
5,629

 
4,840

 
10,469

 
2,999

 
7,470

 

Hillcrest Village
 
1,600

 
1,909

 
51

 
1,600

 
1,960

 
3,560

 
847

 
2,713

 

Hilltop Village
 
2,995

 
4,581

 
1,710

 
3,132

 
6,154

 
9,286

 
947

 
8,339

 
7,500

Hinsdale
 
5,734

 
16,709

 
10,352

 
7,985

 
24,810

 
32,795

 
8,912

 
23,883

 

Holly Park
 
8,975

 
23,799

 
(97
)
 
8,828

 
23,849

 
32,677

 
1,853

 
30,824

 

Howell Mill Village
 
5,157

 
14,279

 
2,105

 
5,157

 
16,384

 
21,541

 
4,111

 
17,430

 

Hyde Park
 
9,809

 
39,905

 
2,507

 
9,809

 
42,412

 
52,221

 
21,138

 
31,083

 

Indian Springs
 
24,974

 
25,903

 
18

 
25,034

 
25,861

 
50,895

 
1,085

 
49,810

 

Indio Towne Center
 
17,946

 
31,985

 
81

 
17,317

 
32,695

 
50,012

 
11,375

 
38,637

 

Inglewood Plaza
 
1,300

 
2,159

 
299

 
1,300

 
2,458

 
3,758

 
1,133

 
2,625

 

Jefferson Square
 
5,167

 
6,445

 
(7,215
)
 
1,894

 
2,503

 
4,397

 
356

 
4,041

 

Keller Town Center
 
2,294

 
12,841

 
652

 
2,404

 
13,383

 
15,787

 
5,648

 
10,139

 

Kent Place
 
4,855

 
3,544

 
742

 
5,228

 
3,913

 
9,141

 
458

 
8,683

 
8,250

Kirkwood Commons
 
6,772

 
16,224

 
478

 
6,802

 
16,672

 
23,474

 
2,838

 
20,636

 
10,528

Kroger New Albany Center
 
3,844

 
6,599

 
646

 
3,844

 
7,245

 
11,089

 
4,768

 
6,321

 

Lake Pine Plaza
 
2,008

 
7,632

 
512

 
2,029

 
8,123

 
10,152

 
3,700

 
6,452

 

Lebanon/Legacy Center
 
3,913

 
7,874

 
92

 
3,913

 
7,966

 
11,879

 
4,983

 
6,896

 

Littleton Square
 
2,030

 
8,859

 
(4,063
)
 
2,418

 
4,408

 
6,826

 
1,427

 
5,399

 

Lloyd King
 
1,779

 
10,060

 
1,121

 
1,779

 
11,181

 
12,960

 
5,156

 
7,804

 

Loehmanns Plaza California
 
5,420

 
9,450

 
799

 
5,420

 
10,249

 
15,669

 
4,810

 
10,859

 

Lower Nazareth Commons
 
15,992

 
12,964

 
3,268

 
16,343

 
15,881

 
32,224

 
6,312

 
25,912

 


113



REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Schedule III - Consolidated Real Estate and Accumulated Depreciation
December 31, 2015
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial Cost
 
 
 
Total Cost
 
 
 
Net Cost
 
 
Shopping Centers (1)
 
 Land
 
 Building & Improvements
 
 Cost Capitalized
 Subsequent to
 Acquisition (2)
 
 Land
 
 Building & Improvements
 
 Total
 
 Accumulated Depreciation
 
 Net of Accumulated Depreciation
 
 Mortgages
Market at Colonnade Center
 
6,455

 
9,839

 
60

 
6,160

 
10,194

 
16,354

 
2,327

 
14,027

 

Market at Preston Forest
 
4,400

 
11,445

 
1,170

 
4,400

 
12,615

 
17,015

 
5,613

 
11,402

 

Market at Round Rock
 
2,000

 
9,676

 
6,214

 
2,000

 
15,890

 
17,890

 
7,024

 
10,866

 

Marketplace Shopping Center
 
1,287

 
5,509

 
5,103

 
1,330

 
10,569

 
11,899

 
5,024

 
6,875

 

Marketplace at Briargate
 
1,706

 
4,885

 
39

 
1,727

 
4,903

 
6,630

 
2,091

 
4,539

 

Millhopper Shopping Center
 
1,073

 
5,358

 
4,960

 
1,796

 
9,595

 
11,391

 
6,049

 
5,342

 

Mockingbird Commons
 
3,000

 
10,728

 
775

 
3,000

 
11,503

 
14,503

 
5,363

 
9,140

 
10,300

Monument Jackson Creek
 
2,999

 
6,765

 
670

 
2,999

 
7,435

 
10,434

 
4,922

 
5,512

 

Morningside Plaza
 
4,300

 
13,951

 
492

 
4,300

 
14,443

 
18,743

 
6,610

 
12,133

 

Murryhill Marketplace
 
2,670

 
18,401

 
1,976

 
2,670

 
20,377

 
23,047

 
9,031

 
14,016

 

Naples Walk
 
18,173

 
13,554

 
571

 
18,173

 
14,125

 
32,298

 
4,468

 
27,830

 
14,488

Newberry Square
 
2,412

 
10,150

 
382

 
2,412

 
10,532

 
12,944

 
7,270

 
5,674

 

Newland Center
 
12,500

 
10,697

 
902

 
12,500

 
11,599

 
24,099

 
5,761

 
18,338

 

Nocatee Town Center
 
10,124

 
8,691

 
558

 
8,695

 
10,678

 
19,373

 
2,820

 
16,553

 

North Hills
 
4,900

 
19,774

 
1,085

 
4,900

 
20,859

 
25,759

 
9,422

 
16,337

 

Northgate Marketplace
 
5,668

 
13,727

 
(101
)
 
4,995

 
14,299

 
19,294

 
2,682

 
16,612

 

Northgate Plaza (Maxtown Road)
 
1,769

 
6,652

 
255

 
1,769

 
6,907

 
8,676

 
3,413

 
5,263

 

Northgate Square
 
5,011

 
8,692

 
702

 
5,011

 
9,394

 
14,405

 
2,910

 
11,495

 

Northlake Village
 
2,662

 
11,284

 
1,215

 
2,686

 
12,475

 
15,161

 
5,360

 
9,801

 

Oak Shade Town Center
 
6,591

 
28,966

 
518

 
6,591

 
29,484

 
36,075

 
4,675

 
31,400

 
9,208

Oakbrook Plaza
 
4,000

 
6,668

 
321

 
4,000

 
6,989

 
10,989

 
3,207

 
7,782

 

Oakleaf Commons
 
3,503

 
11,671

 
247

 
3,510

 
11,911

 
15,421

 
4,350

 
11,071

 

Ocala Corners
 
1,816

 
10,515

 
370

 
1,816

 
10,885

 
12,701

 
2,181

 
10,520

 
4,826

Old St Augustine Plaza
 
2,368

 
11,405

 
218

 
2,368

 
11,623

 
13,991

 
5,951

 
8,040

 

Paces Ferry Plaza
 
2,812

 
12,639

 
441

 
2,812

 
13,080

 
15,892

 
8,010

 
7,882

 

Panther Creek
 
14,414

 
14,748

 
3,044

 
15,212

 
16,994

 
32,206

 
10,251

 
21,955

 

Peartree Village
 
5,197

 
19,746

 
859

 
5,197

 
20,605

 
25,802

 
10,404

 
15,398

 
6,836

Persimmons Place
 
25,979

 
37,101

 

 
25,979

 
37,101

 
63,080

 
1,162

 
61,918

 

Pike Creek
 
5,153

 
20,652

 
1,613

 
5,251

 
22,167

 
27,418

 
10,446

 
16,972

 

Pima Crossing
 
5,800

 
28,143

 
1,515

 
5,800

 
29,658

 
35,458

 
13,956

 
21,502

 

Pine Lake Village
 
6,300

 
10,991

 
816

 
6,300

 
11,807

 
18,107

 
5,456

 
12,651

 

Pine Tree Plaza
 
668

 
6,220

 
610

 
668

 
6,830

 
7,498

 
3,045

 
4,453

 


114



REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Schedule III - Consolidated Real Estate and Accumulated Depreciation
December 31, 2015
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial Cost
 
 
 
Total Cost
 
 
 
Net Cost
 
 
Shopping Centers (1)
 
 Land
 
 Building & Improvements
 
 Cost Capitalized
 Subsequent to
 Acquisition (2)
 
 Land
 
 Building & Improvements
 
 Total
 
 Accumulated Depreciation
 
 Net of Accumulated Depreciation
 
 Mortgages
Plaza Hermosa
 
4,200

 
10,109

 
3,031

 
4,202

 
13,138

 
17,340

 
4,916

 
12,424

 
13,800

Powell Street Plaza
 
8,248

 
30,716

 
1,998

 
8,248

 
32,714

 
40,962

 
12,432

 
28,530

 

Powers Ferry Square
 
3,687

 
17,965

 
6,306

 
5,321

 
22,637

 
27,958

 
12,546

 
15,412

 

Powers Ferry Village
 
1,191

 
4,672

 
499

 
1,191

 
5,171

 
6,362

 
3,191

 
3,171

 

Prairie City Crossing
 
4,164

 
13,032

 
381

 
4,164

 
13,413

 
17,577

 
5,150

 
12,427

 

Prestonbrook
 
7,069

 
8,622

 
257

 
7,069

 
8,879

 
15,948

 
5,983

 
9,965

 
6,800

Preston Oaks
 
763

 
30,438

 
398

 
763

 
30,836

 
31,599

 
2,451

 
29,148

 

Red Bank
 
10,336

 
9,505

 
(115
)
 
10,110

 
9,616

 
19,726

 
1,953

 
17,773

 

Regency Commons
 
3,917

 
3,616

 
236

 
3,917

 
3,852

 
7,769

 
1,989

 
5,780

 

Regency Solar (Saugus)
 

 

 
758

 
6

 
752

 
758

 
78

 
680

 

Regency Square
 
4,770

 
25,191

 
4,768

 
5,060

 
29,669

 
34,729

 
20,863

 
13,866

 

Rona Plaza
 
1,500

 
4,917

 
186

 
1,500

 
5,103

 
6,603

 
2,604

 
3,999

 

Russell Ridge
 
2,234

 
6,903

 
1,296

 
2,234

 
8,199

 
10,433

 
4,200

 
6,233

 

Sammamish-Highlands
 
9,300

 
8,075

 
7,949

 
9,592

 
15,732

 
25,324

 
5,388

 
19,936

 

San Leandro Plaza
 
1,300

 
8,226

 
514

 
1,300

 
8,740

 
10,040

 
3,790

 
6,250

 

Sandy Springs
 
6,889

 
28,056

 
2,045

 
6,889

 
30,101

 
36,990

 
3,189

 
33,801

 

Saugus
 
19,201

 
17,984

 
(1,114
)
 
18,805

 
17,266

 
36,071

 
6,429

 
29,642

 

Seminole Shoppes
 
8,593

 
7,523

 
159

 
8,629

 
7,646

 
16,275

 
1,940

 
14,335

 
9,698

Sequoia Station
 
9,100

 
18,356

 
1,467

 
9,100

 
19,823

 
28,923

 
8,547

 
20,376

 
21,100

Sherwood II
 
2,731

 
6,360

 
631

 
2,731

 
6,991

 
9,722

 
2,413

 
7,309

 

Shoppes @ 104
 
11,193

 

 
810

 
6,652

 
5,351

 
12,003

 
1,572

 
10,431

 

Shoppes at Fairhope Village
 
6,920

 
11,198

 
361

 
6,920

 
11,559

 
18,479

 
3,607

 
14,872

 

Shoppes of Grande Oak
 
5,091

 
5,985

 
245

 
5,091

 
6,230

 
11,321

 
4,272

 
7,049

 

Shops at Arizona
 
3,063

 
3,243

 
176

 
3,063

 
3,419

 
6,482

 
1,964

 
4,518

 

Shops at County Center
 
9,957

 
11,269

 
805

 
10,225

 
11,806

 
22,031

 
6,260

 
15,771

 

Shops at Erwin Mill
 
9,082

 
6,087

 
(12
)
 
9,082

 
6,075

 
15,157

 
814

 
14,343

 
10,000

Shops at Johns Creek
 
1,863

 
2,014

 
(342
)
 
1,501

 
2,034

 
3,535

 
1,039

 
2,496

 

Shops at Mira Vista
 
11,691

 
9,026

 
36

 
11,691

 
9,062

 
20,753

 
712

 
20,041

 
250

Shops at Quail Creek
 
1,487

 
7,717

 
446

 
1,499

 
8,151

 
9,650

 
2,461

 
7,189

 

Shops on Main
 
17,020

 
26,988

 

 
17,020

 
26,988

 
44,008

 
2,398

 
41,610

 

Signature Plaza
 
2,396

 
3,898

 
46

 
2,396

 
3,944

 
6,340

 
2,227

 
4,113

 

South Bay Village
 
11,714

 
15,580

 
1,385

 
11,776

 
16,903

 
28,679

 
2,159

 
26,520

 


115



REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Schedule III - Consolidated Real Estate and Accumulated Depreciation
December 31, 2015
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial Cost
 
 
 
Total Cost
 
 
 
Net Cost
 
 
Shopping Centers (1)
 
 Land
 
 Building & Improvements
 
 Cost Capitalized
 Subsequent to
 Acquisition (2)
 
 Land
 
 Building & Improvements
 
 Total
 
 Accumulated Depreciation
 
 Net of Accumulated Depreciation
 
 Mortgages
South Lowry Square
 
3,434

 
10,445

 
791

 
3,434

 
11,236

 
14,670

 
5,143

 
9,527

 

Southcenter
 
1,300

 
12,750

 
1,328

 
1,300

 
14,078

 
15,378

 
5,980

 
9,398

 

Southpark at Cinco Ranch
 
18,395

 
11,306

 
6,014

 
21,107

 
14,608

 
35,715

 
2,229

 
33,486

 

SouthPoint Crossing
 
4,412

 
12,235

 
736

 
4,412

 
12,971

 
17,383

 
5,462

 
11,921

 

Starke
 
71

 
1,683

 
4

 
71

 
1,687

 
1,758

 
642

 
1,116

 

Sterling Ridge
 
12,846

 
12,162

 
490

 
12,846

 
12,652

 
25,498

 
8,069

 
17,429

 
13,900

Stonewall
 
27,511

 
22,123

 
7,086

 
28,429

 
28,291

 
56,720

 
11,860

 
44,860

 

Strawflower Village
 
4,060

 
8,084

 
502

 
4,060

 
8,586

 
12,646

 
4,052

 
8,594

 

Stroh Ranch
 
4,280

 
8,189

 
526

 
4,280

 
8,715

 
12,995

 
5,521

 
7,474

 

Suncoast Crossing
 
9,030

 
10,764

 
104

 
9,030

 
10,868

 
19,898

 
4,254

 
15,644

 

Tanasbourne Market
 
3,269

 
10,861

 
(297
)
 
3,269

 
10,564

 
13,833

 
3,599

 
10,234

 

Tassajara Crossing
 
8,560

 
15,464

 
800

 
8,560

 
16,264

 
24,824

 
7,171

 
17,653

 
19,800

Tech Ridge Center
 
12,945

 
37,169

 
388

 
12,945

 
37,557

 
50,502

 
6,869

 
43,633

 
8,741

The Hub Hillcrest Market
 
18,773

 
61,906

 
3,848

 
19,610

 
64,917

 
84,527

 
5,724

 
78,803

 

Town Square
 
883

 
8,132

 
362

 
883

 
8,494

 
9,377

 
4,309

 
5,068

 

Twin City Plaza
 
17,245

 
44,225

 
1,886

 
17,263

 
46,093

 
63,356

 
12,801

 
50,555

 

Twin Peaks
 
5,200

 
25,827

 
804

 
5,200

 
26,631

 
31,831

 
11,550

 
20,281

 

University Commons
 
4,070

 
30,785

 
2

 
4,070

 
30,787

 
34,857

 
430

 
34,427

 
38,000

Valencia Crossroads
 
17,921

 
17,659

 
563

 
17,921

 
18,222

 
36,143

 
13,738

 
22,405

 

Village at Lee Airpark
 
11,099

 
12,955

 
3,266

 
11,877

 
15,443

 
27,320

 
5,351

 
21,969

 

Village Center
 
3,885

 
14,131

 
7,910

 
5,411

 
20,515

 
25,926

 
7,167

 
18,759

 

Walker Center
 
3,840

 
7,232

 
3,248

 
3,878

 
10,442

 
14,320

 
4,691

 
9,629

 

Welleby Plaza
 
1,496

 
7,787

 
909

 
1,496

 
8,696

 
10,192

 
6,193

 
3,999

 

Wellington Town Square
 
2,041

 
12,131

 
336

 
2,041

 
12,467

 
14,508

 
5,964

 
8,544

 
12,800

West Park Plaza
 
5,840

 
5,759

 
1,187

 
5,840

 
6,946

 
12,786

 
3,306

 
9,480

 

Westchase
 
5,302

 
8,273

 
355

 
5,302

 
8,628

 
13,930

 
2,606

 
11,324

 
6,944

Westchester Commons
 
3,366

 
11,751

 
10,662

 
4,894

 
20,885

 
25,779

 
4,790

 
20,989

 

Westchester Plaza
 
1,857

 
7,572

 
291

 
1,857

 
7,863

 
9,720

 
4,705

 
5,015

 

Westlake Plaza and Center
 
7,043

 
27,195

 
28,631

 
17,488

 
45,381

 
62,869

 
14,369

 
48,500

 

Westwood Village
 
19,933

 
25,301

 
(1,312
)
 
19,553

 
24,369

 
43,922

 
9,760

 
34,162

 

Willow Festival
 
1,954

 
56,501

 
544

 
1,954

 
57,045

 
58,999

 
9,220

 
49,779

 
39,505

Woodcroft Shopping Center
 
1,419

 
6,284

 
671

 
1,421

 
6,953

 
8,374

 
3,712

 
4,662

 


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REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Schedule III - Consolidated Real Estate and Accumulated Depreciation
December 31, 2015
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial Cost
 
 
 
Total Cost
 
 
 
Net Cost
 
 
Shopping Centers (1)
 
 Land
 
 Building & Improvements
 
 Cost Capitalized
 Subsequent to
 Acquisition (2)
 
 Land
 
 Building & Improvements
 
 Total
 
 Accumulated Depreciation
 
 Net of Accumulated Depreciation
 
 Mortgages
Woodman Van Nuy
 
5,500

 
7,195

 
232

 
5,500

 
7,427

 
12,927

 
3,352

 
9,575

 

Woodmen and Rangewood
 
7,621

 
11,018

 
508

 
7,621

 
11,526

 
19,147

 
9,536

 
9,611

 

Woodside Central
 
3,500

 
9,287

 
580

 
3,500

 
9,868

 
13,368

 
4,306

 
9,062

 

 
 
 
 
 
 
 
 
 
 

 
 
 

 
 
 
 
Total Corporate Assets
 

 

 
1,682

 

 
1,682

 
1,682

 
1,277

 
405

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
Properties in Development
 

 

 
217,036

 
24,793

 
192,243

 
217,036

 
962

 
216,074

 

 
 
$
1,419,047

 
2,641,828

 
485,025

 
1,457,261

 
3,088,639

 
4,545,900

 
1,043,787

 
3,502,113

 
501,875


(1) See Item 2, Properties for geographic location and year each operating property was acquired.
(2) The negative balance for costs capitalized subsequent to acquisition could include out-parcels sold, provision for loss recorded and development transfers subsequent to the initial costs.
See accompanying report of independent registered public accounting firm.

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REGENCY CENTERS CORPORATION AND REGENCY CENTERS, L.P.
Schedule III - Consolidated Real Estate and Accumulated Depreciation, continued
December 31, 2015
(in thousands)

Depreciation and amortization of the Company's investment in buildings and improvements reflected in the statements of operations is calculated over the estimated useful lives of the assets, which are up to 40 years. The aggregate cost for federal income tax purposes was approximately $4.7 billion at December 31, 2015.

The changes in total real estate assets for the years ended December 31, 2015, 2014, and 2013 are as follows (in thousands):

 
 
2015
 
2014
 
2013
Beginning balance
 
$
4,409,886

 
4,026,531

 
3,909,912

Acquired properties
 
39,850

 
274,091

 
143,992

Developments and improvements
 
174,972

 
191,250

 
180,374

Sale of properties
 
(78,808
)
 
(81,811
)
 
(200,393
)
Provision for impairment
 

 
(175
)
 
(7,354
)
Ending balance
 
$
4,545,900

 
4,409,886

 
4,026,531



The changes in accumulated depreciation for the years ended December 31, 2015, 2014, and 2013 are as follows (in thousands):

 
 
2015
 
2014
 
2013
Beginning balance
 
$
933,708

 
844,873

 
782,749

Depreciation expense
 
119,475

 
108,692

 
99,883

Sale of properties
 
(9,396
)
 
(19,857
)
 
(36,405
)
Provision for impairment
 

 

 
(1,354
)
Ending balance
 
$
1,043,787

 
933,708

 
844,873


See accompanying report of independent registered public accounting firm.

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Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.

Item 9A. Controls and Procedures

Controls and Procedures (Regency Centers Corporation)
Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
Under the supervision and with the participation of the Parent Company's management, including its chief executive officer and chief financial officer, the Parent Company conducted an evaluation of its disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Based on this evaluation, the Parent Company's chief executive officer and chief financial officer concluded that its disclosure controls and procedures were effective as of the end of the period covered by this annual report on Form 10-K to ensure information required to be disclosed in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time period specified in the SEC's rules and forms. These disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed by the Parent Company in the reports it files or submits is accumulated and communicated to management, including its chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.
Management's Report on Internal Control over Financial Reporting
The Parent Company's management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of its management, including its chief executive officer and chief financial officer, the Parent Company conducted an evaluation of the effectiveness of its internal control over financial reporting based on the framework in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on its evaluation under the framework in Internal Control - Integrated Framework (2013), the Parent Company's management concluded that its internal control over financial reporting was effective as of December 31, 2015.
KPMG LLP, an independent registered public accounting firm, has audited the consolidated financial statements included in this annual report on Form 10-K and, as part of their audit, has issued a report, included herein, on the effectiveness of the Parent Company's internal control over financial reporting.
The Parent Company's system of internal control over financial reporting was designed to provide reasonable assurance regarding the preparation and fair presentation of published financial statements in accordance with accounting principles generally accepted in the United States. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance and may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Changes in Internal Controls
There have been no changes in the Parent Company's internal controls over financial reporting identified in connection with this evaluation that occurred during the fourth quarter of 2015 and that have materially affected, or are reasonably likely to materially affect, its internal controls over financial reporting.

Controls and Procedures (Regency Centers, L.P.)
Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
Under the supervision and with the participation of the Operating Partnership's management, including the chief executive officer and chief financial officer of its general partner, the Operating Partnership conducted an evaluation of its disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and 15d-15(e) promulgated under the Exchange Act. Based on this evaluation, the chief executive officer and chief financial officer of its general partner concluded that its disclosure controls and procedures were effective as of the end of the period covered by this annual report on Form 10-K to ensure information required to be disclosed in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time period specified in the SEC's rules and forms. These disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed by the Operating Partnership in the reports it files or submits is accumulated and communicated to management, including the chief executive officer and chief financial officer of its general partner, as appropriate, to allow timely decisions regarding required disclosure.

119



Management's Report on Internal Control over Financial Reporting
The Operating Partnership's management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of its management, including the chief executive officer and chief financial officer of its general partner, the Operating Partnership conducted an evaluation of the effectiveness of its internal control over financial reporting based on the framework in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on its evaluation under the framework in Internal Control - Integrated Framework (2013), the Operating Partnership's management concluded that its internal control over financial reporting was effective as of December 31, 2015.
KPMG LLP, an independent registered public accounting firm, has audited the consolidated financial statements included in this annual report on Form 10-K and, as part of their audit, has issued a report, included herein, on the effectiveness of the Operating Partnership's internal control over financial reporting.
The Operating Partnership's system of internal control over financial reporting was designed to provide reasonable assurance regarding the preparation and fair presentation of published financial statements in accordance with accounting principles generally accepted in the United States. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance and may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Changes in Internal Controls
There have been no changes in the Operating Partnership's internal controls over financial reporting identified in connection with this evaluation that occurred during the fourth quarter of 2015 and that have materially affected, or are reasonably likely to materially affect, its internal controls over financial reporting.

Item 9B. Other Information
Not applicable


PART III
Item 10. Directors, Executive Officers, and Corporate Governance

Information concerning our directors, executive officers, and corporate governance is incorporated herein by reference to our definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K with respect to the 2016 Annual Meeting of Stockholders. Information regarding executive officers is included in Part I of this Form 10-K as permitted by General Instruction G(3).
 
Code of Ethics. We have adopted a code of ethics applicable to our Board of Directors, principal executive officers, principal financial officer, principal accounting officer and persons performing similar functions. The text of this code of ethics may be found on our web site at www.regencycenters.com. We intend to post notice of any waiver from, or amendment to, any provision of our code of ethics on our web site.



120





Item 11. Executive Compensation

Incorporated herein by reference to our definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K with respect to the 2016 Annual Meeting of Stockholders.


Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Equity Compensation Plan Information
 
 
(a)
 
(b)
 
(c)
Plan Category
 
Number of securities to be issued upon exercise of outstanding options, warrants and rights (1)
 



Weighted-average exercise price of outstanding options, warrants and rights(2)
 
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column a) (3)
Equity compensation plans
approved by security holders
 
8,740

 
$
88.45

 
1,829,422

Equity compensation plans not approved by security holders
 
N/A
 
N/A
 
N/A
Total
 
8,740

 
$
88.45

 
1,829,422

(1) This column does not include 615,420 shares that may be issued pursuant to unvested restricted stock and performance share awards.

(2) The weighted average exercise price excludes stock rights awards, which we sometimes refer to as unvested restricted stock.

(3) The Regency Centers Corporation 2011 Omnibus Incentive Plan, (“Omnibus Plan”), as approved by stockholders at our 2011 annual meeting, provides that an aggregate maximum of 4.1 million shares of our common stock are reserved for issuance under the Omnibus Plan.

Information about security ownership is incorporated herein by reference to our definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K with respect to the 2016 Annual Meeting of Stockholders.

Item 13.     Certain Relationships and Related Transactions, and Director Independence

Incorporated herein by reference to our definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K with respect to the 2016 Annual Meeting of Stockholders.

Item 14.     Principal Accountant Fees and Services
    
Incorporated herein by reference to our definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K with respect to the 2016 Annual Meeting of Stockholders.    

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PART IV

Item 15. Exhibits and Financial Statement Schedules

(a)    Financial Statements and Financial Statement Schedules:
Regency Centers Corporation and Regency Centers, L.P. 2015 financial statements and financial statement schedule, together with the reports of KPMG LLP are listed on the index immediately preceding the financial statements in Item 8, Consolidated Financial Statements and Supplemental Data.
(b)    Exhibits:
In reviewing the agreements included as exhibits to this report, please remember they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure information about the Company, its subsidiaries or other parties to the agreements. The Agreements contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and:
should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;
have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;
may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and
were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.

Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. We acknowledge that, notwithstanding the inclusion of the foregoing cautionary statements, we are responsible for considering whether additional specific disclosures of material information regarding material contractual provisions are required to make the statements in this report not misleading. Additional information about the Company may be found elsewhere in this report and the Company's other public files, which are available without charge through the SEC's website at http://www.sec.gov.
Unless otherwise indicated below, the Commission file number to the exhibit is No. 001-12298.
1. Underwriting Agreement

(a)
Equity Distribution Agreement (the “Wells Agreement”) among the Company, Regency Centers, L.P. and Wells Fargo Securities, LLC dated August 10, 2012 (incorporated by reference to Exhibit 1.1 to the Company's report on Form 8-K filed on August 10, 2012), as amended by Amendment No. 1 dated August 6, 2013 (incorporated by reference to Exhibit 1.2 to the Company’s report on Form 8-K filed on August 6, 2013), Amendment No. 2 dated March 4, 2014 (incorporated by reference to Exhibit 1.1 to the Company’s report on Form 8-K filed on March 4, 2014) and Amendment No. 3 dated February 24, 2015 (incorporated by reference to Exhibit 1(a) to the Company’s Form 10-Q filed on May 7, 2015).

The Equity Distribution Agreements listed below are substantially identical in all material respects to the Wells Agreement, except for the identities of the parties, and have not been filed as exhibits to the Company's 1934 Act reports pursuant to Instruction 2 to Item 601 of Regulation S-K:

(i)
Equity Distribution Agreement among the Company, Regency Centers, L.P. and Merrill Lynch, Pierce, Fenner & Smith Incorporated dated August 10, 2012, as amended by Amendment Nos. 1, 2, and 3; and

(ii)
Equity Distribution Agreement among the Company, Regency Centers, L.P. and J.P. Morgan Securities LLC dated August 10, 2012, as amended by Amendment Nos. 1, 2, and 3.
 
(b)
Equity Distribution Agreement (the “Jefferies Agreement”) among the Company, Regency Centers, L.P. and Jefferies LLC dated August 6, 2013 (incorporated by reference to Exhibit 1.1 to the Company's report on Form 8-K filed on August 6, 2013), as amended by Amendment No. 1 dated March 4, 2014 (incorporated by

122



reference to the Company’s Form 8-K filed on March 4, 2014) and Amendment No. 2 (incorporated by reference to Exhibit 1(b) to the Company’s Form 10-Q filed on May 7, 2015).
  
The Equity Distribution Agreements listed below is substantially identical in all material respects to the Jefferies Agreement except for the identities of the parties, and has not been filed as an exhibit to the Company's 1934 Act reports pursuant to Instruction 2 to Item 601 of Regulation S-K:

(i)
Equity Distribution Agreement among the Company, Regency Centers, L.P. and RBC Capital Markets, LLC dated August 6, 2013 as amended by Amendment No. 1 dated March 4, 2014 and Amendment No. 2 dated February 24, 2015.

3.    Articles of Incorporation and Bylaws
(a)
Restated Articles of Incorporation of Regency Centers Corporation (incorporated by reference to Exhibit 3.1 to the Company's Form 8-K filed on June 5, 2013).
(b)
Amended and Restated Bylaws of Regency Centers Corporation (incorporated by reference to Exhibit 3.1 to the Company's Form 8-K filed on July 20, 2015).
(c)
Fourth Amended and Restated Certificate of Limited Partnership of Regency Centers, L.P. (incorporated by reference to Exhibit 3(a) to Regency Centers, L.P.'s Form 10-K filed on March 17, 2009).
(d)
Fifth Amended and Restated Agreement of Limited Partnership of Regency Centers, L.P., (incorporated by reference to Exhibit 3(d) to the Company's Form 10-K filed on February 19, 2014).
4.    Instruments Defining Rights of Security Holders
(a)
See Exhibits 3(a) and 3(b) for provisions of the Articles of Incorporation and Bylaws of the Company defining the rights of security holders. See Exhibits 3(c) and 3(d) for provisions of the Partnership Agreement of Regency Centers, L.P. defining rights of security holders.
(b)
Indenture dated December 5, 2001 between Regency Centers, L.P., the guarantors named therein and First Union National Bank, as trustee (incorporated by reference to Exhibit 4.4 to Regency Centers, L.P.'s Form 8-K filed on December 10, 2001).
(i)
First Supplemental Indenture dated as of June 5, 2007 among Regency Centers, L.P., the Company as guarantor and U.S. Bank National Association, as successor to Wachovia Bank, National Association (formerly known as First Union National Bank), as trustee (incorporated by reference to Exhibit 4.1 to Regency Centers, L.P.'s Form 8-K filed on June 5, 2007).
(ii)
Second Supplemental Indenture dated as of June 2, 2010 to the Indenture dated as of December 5, 2001 between Regency Centers, L.P., Regency Centers Corporation, as guarantor, and U.S. Bank National Association, as successor to Wachovia Bank, National Association (formerly known as First Union National Bank), as Trustee incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K filed on June 3, 2010).
(iii)
Third Supplemental Indenture dated as of August 17, 2015 to the Indenture dated as of December 5, 2001 among RCLP, Regency, as guarantor, and U.S. Bank, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K filed on August 18, 2015).
(c)
Indenture dated July 18, 2005 between Regency Centers, L.P., the guarantors named therein and Wachovia Bank, National Bank, as trustee (incorporated by reference to Exhibit 4.1 to Regency Centers, L.P's registration statement on Form S-4 filed on August 5, 2005, No. 333-127274).
10.    Material Contracts (~ indicates management contract or compensatory plan)
~(a)
Regency Centers Corporation Long Term Omnibus Plan (incorporated by reference to Exhibit 10.9 to the Company's Form 10-Q filed on May 8, 2008).

123



~(i)
Form of Stock Rights Award Agreement pursuant to the Company's Long Term Omnibus Plan (incorporated by reference to Exhibit 10(b) to the Company's Form 10-K filed on March 10, 2006).
~(ii)
Form of 409A Amendment to Stock Rights Award Agreement (incorporated by reference to Exhibit 10(b)(i) to the Company's Form 10-K filed on March on 17, 2009).
~(iii)
Form of Nonqualified Stock Option Agreement pursuant to the Company's Long Term Omnibus Plan (incorporated by reference to Exhibit 10(c) to the Company's Form 10-K filed on March 10, 2006).
~(iv)
Form of 409A Amendment to Stock Option Agreement (incorporated by reference to Exhibit 10(c)(i) to the Company's Form 10-K filed on March 17, 2009).
~(v)
Amended and Restated Deferred Compensation Plan dated May 6, 2003 (incorporated by reference to Exhibit 10(k) to the Company's Form 10-K filed on March 12, 2004).
~(vi)
Regency Centers Corporation 2005 Deferred Compensation Plan (incorporated by reference to Exhibit 10(s) to the Company's Form 8-K filed on December 21, 2004).
~(vii)
First Amendment to Regency Centers Corporation 2005 Deferred Compensation Plan dated December 2005 (incorporated by reference to Exhibit 10(q)(i) to the Company's Form 10-K filed on March 10, 2006).
~(viii)
Second Amendment to the Regency Centers Corporation Amended and Restated Deferred Compensation Plan (incorporated by reference to Exhibit 10.2 to the Company's Form 8-K filed on June 13, 2011).
~(ix)
Third Amendment to the Regency Centers Corporation 2005 Deferred Compensation Plan (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed on June 13, 2011).
~(b)
Regency Centers Corporation 2011 Omnibus Plan (incorporated by reference to Annex A to the Company's 2011 Annual Meeting Proxy Statement filed on March 24, 2011).
~(c)
Form of Director/Officer Indemnification Agreement (filed as an Exhibit to Pre-effective Amendment No. 2 to the Company's registration statement on Form S-11 filed on October 5, 1993 (33-67258), and incorporated by reference).
~(d)
Form of Amended and Restated Severance and Change of Control Agreement dated as of July 15, 2015 by and between the Company and Martin E. Stein, Jr. (incorporated by reference to Exhibit 10.1 of the Company's Form 8-K filed on July 20, 2015).
~(e)
Form of Amended and Restated Severance and Change of Control Agreement dated as of July 15, 2015 by and between the Company and Lisa Palmer (incorporated by reference to Exhibit 10.3 of the Company's Form 8-K filed on July 20, 2015).
~(f)
Form of Amended and Restated Severance and Change of Control Agreement dated as of July 15, 2015 by and between the Company and Dan M. Chandler, III (incorporated by reference to Exhibit 10.4 of the Company's Form 8-K filed on July 20, 2015).
~(g)
Form of Amended and Restated Severance and Change of Control Agreement dated as of July 15, 2015 by and between the Company and John S. Delatour (incorporated by reference to Exhibit 10.5 of the Company's Form 8-K filed on July 20, 2015).
~(h)
Form of Amended and Restated Severance and Change of Control Agreement dated as of July 15, 2015 by and between the Company and James D. Thompson (incorporated by reference to Exhibit 10.6 of the Company's Form 8-K filed on July 20, 2015).

124



(i)
Third Amended and Restated Credit Agreement dated as of September 7, 2011 by and among Regency Centers, , L.P., the Company, each of the financial institutions party thereto, and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q filed on November 8, 2011).
(i)
First Amendment to Third Amended and Restated Credit Agreement dated September 13, 2012 (incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q filed on November 9, 2012).
(ii)
Second Amendment to Third Amended and Restated Credit Agreement dated June 27, 2014 (incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q filed on August 8, 2014).
(iii)
Third Amendment to Third Amended and Restated Credit Agreement dated May 13, 2015 (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on May 18, 2015).
(j)
Term Loan Agreement dated as of November 17, 2011 by and among Regency Centers, L.P., the Company, each of the financial institutions party thereto and Wells Fargo Securities, LLC (incorporated by reference to Exhibit 10.1 to the Company's Form 10-K filed on February 29, 2012).
(i)
First Amendment to Term Loan Agreement dated as of June 19, 2012 (incorporated by reference to Exhibit 10(h)(i) to the Company's Form 10-K filed on March 1, 2013).
(ii)
Second Amendment to Term Loan Agreement dated as of December 19, 2012 (incorporated by reference to Exhibit 10(h)(ii) to the Company's Form 10-K filed on March 1, 2013).
(iii)
Third Amendment to Term Loan Agreement dated as of June 27, 2014 (incorporated by reference to Exhibit 10.2 to the Company's Form 10-Q filed on August 8, 2014).
(iv)
Fourth Amendment to Term Loan Agreement dated as of May 13, 2015.
(k)
Second Amended and Restated Limited Liability Company Agreement of Macquarie CountryWide-Regency II, LLC dated as of July 31, 2009 by and among Global Retail Investors, LLC, Regency Centers, L.P. and Macquarie CountryWide (US) No. 2 LLC (incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q filed on November 6, 2009).
(i)
Amendment No. 1 to Second Amended and Restate Limited Liability Company Agreement of GRI-Regency, LLC (formerly Macquarie CountryWide-Regency II, LLC) (incorporated by reference to Exhibit 10.(h)(i) to the Company’s Form 10-K filed March 1, 2011).
(l)
Form of Retirement Agreement by and between Regency Centers Corporation and Brian Smith trustee (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on November, 2015).
(m)
Form of Consulting Agreement by and between Regency Centers, LP and Brian Smith (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K filed on November, 2015).
12.    Computation of ratios
12.1    Computation of Ratio of Earnings to Fixed Charges and Ratio of Combined Fixed Charges and Preference Dividends to Earnings
21.    Subsidiaries of Regency Centers Corporation
23.    Consents of Independent Accountants
23.1    Consent of KPMG LLP for Regency Centers Corporation.
23.2    Consent of KPMG LLP for Regency Centers, L.P.

125



31.    Rule 13a-14(a)/15d-14(a) Certifications.
31.1    Rule 13a-14 Certification of Chief Executive Officer for Regency Centers Corporation.
31.2    Rule 13a-14 Certification of Chief Financial Officer for Regency Centers Corporation.
31.3    Rule 13a-14 Certification of Chief Executive Officer for Regency Centers, L.P.
31.4    Rule 13a-14 Certification of Chief Financial Officer for Regency Centers, L.P.
32.    Section 1350 Certifications.
The certifications in this exhibit 32 are being furnished solely to accompany this report pursuant to 18 U.S.C. § 1350, and are not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not to be incorporated by reference into any of the Company's filings, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
32.1
18 U.S.C. § 1350 Certification of Chief Executive Officer for Regency Centers Corporation.
32.2
18 U.S.C. § 1350 Certification of Chief Financial Officer for Regency Centers Corporation.
32.3    18 U.S.C. § 1350 Certification of Chief Executive Officer for Regency Centers, L.P.
32.4    18 U.S.C. § 1350 Certification of Chief Financial Officer for Regency Centers, L.P.
101.    Interactive Data Files
101.INS+    XBRL Instance Document
101.SCH+    XBRL Taxonomy Extension Schema Document
101.CAL+    XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF+    XBRL Taxonomy Definition Linkbase Document
101.LAB+    XBRL Taxonomy Extension Label Linkbase Document
101.PRE+    XBRL Taxonomy Extension Presentation Linkbase Document
__________________________
+    Submitted electronically with this Annual Report

126




SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
February 18, 2016
REGENCY CENTERS CORPORATION
 
By:

/s/ Martin E. Stein, Jr.
Martin E. Stein. Jr., Chairman of the Board and Chief Executive Officer



February 18, 2016
REGENCY CENTERS, L.P.
 
By:
Regency Centers Corporation, General Partner
 
By:

/s/ Martin E. Stein, Jr.
Martin E. Stein. Jr., Chairman of the Board and Chief Executive Officer


127





Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
February 18, 2016
 

/s/ Martin E. Stein, Jr.
Martin E. Stein. Jr., Chairman of the Board and Chief Executive Officer
February 18, 2016
 

/s/ Lisa Palmer
Lisa Palmer, President and Chief Financial Officer (Principal Financial Officer)
February 18, 2016
 

/s/ J. Christian Leavitt
J. Christian Leavitt, Senior Vice President and Treasurer (Principal Accounting Officer)
February 18, 2016
 

/s/ Raymond L. Bank
Raymond L. Bank, Director
February 18, 2016
 

/s/ Bryce Blair
Bryce Blair, Director
February 18, 2016
 

/s/ C. Ronald Blankenship
C. Ronald Blankenship, Director
February 18, 2016
 

/s/ A.R. Carpenter
A.R. Carpenter, Director
February 18, 2016
 

/s/ J. Dix Druce
J. Dix Druce, Director
February 18, 2016
 

/s/ Mary Lou Fiala
Mary Lou Fiala, Director
February 18, 2016
 

/s/ David P. O'Connor
David P. O'Connor, Director
February 18, 2016
 

/s/ John C. Schweitzer
John C. Schweitzer, Director
February 18, 2016
 

/s/ Thomas G. Wattles
Thomas G. Wattles, Director


128
Exhibit


Exhibit 10(j)(iv)

FOURTH AMENDMENT TO TERM LOAN AGREEMENT



THIS FOURTH AMENDMENT TO TERM LOAN AGREEMENT (this “Amendment”) dated as of May 13, 2015, by and among REGENCY CENTERS, L.P., a Delaware limited partnership (the “Borrower”), REGENCY CENTERS CORPORATION, a Florida corporation (the “Parent”), each of the Lenders, and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent (together with its successors and assigns, the “Administrative Agent”) for the Lenders.

WHEREAS, the Borrower, the Parent, the Lenders, the Administrative Agent and certain other parties have entered into that certain Term Loan Agreement dated as of November 17, 2011 (as amended from time to time and as in effect immediately prior to the effectiveness of this Amendment, the “Credit Agreement”);

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto hereby agree a s follows:

Section 1.    Specific Amendments to Credit Agreement.    Upon the effectiveness of this
Amendment, the parties hereto agree that the Credit Agreement shall be amended as follows:

(a)    The Credit Agreement is amended by adding the following new definitions in Section
1.1. in proper alphabetical order:

Fourth Amendment Effective Date” means May 13, 2015.

Unrestricted Cash” means, as of any date of determination, cash and Cash Equivalents held by the Borrower and its Subsidiaries other than tenant deposits and other cash and Cash Equivalents that are subject to a Lien (other than Liens of a depository institution or securities intermediary arising by virtue of any statutory or common law provisions, rights of set -off or similar rights or remedies as to deposit accounts or securities accounts or other funds maintained with such depository institution or securities intermediary (other than any of the foregoing intend ed as cash collateral)) or a Negative Pledge or the disposition of which is restricted in any way that would prohibit the use thereof for the payment of Indebtedness.

(b) The Credit Agreement is further amended by restating the following definitions of “Capitalization Rate”, “Third Party Net Income” and “Total Asset Value” set forth in Section 1.1. in their entireties as follows:

Capitalization Rate” means 6.50%.

Third Party Net Income” means, with respect to a Person and for a given period (a) net income from fees, commissions and other compensation derived from (without duplication) (i) managing and/or leasing properties owned by third parties; (ii) developing properties for third parties; (iii) arranging for property acquisitions by third parties; (iv) arranging financing for third parties and (v) consulting and business services performed for third parties; minus (b) taxes paid or accrued in accordance with GAAP during such period by any “taxable REIT subsidiary” (as defined in Sec.
856(l) of the Internal Revenue Code) of such Person or any of its Subsidiaries. For
purposes of this definition, the term “third parties” shall include Unconsolidated
Affiliates of a Person.

Total Asset Value” means, at a given time, the sum (without duplication) of all of the following of the Parent and its Consolidated Subsidiaries determined on a consolidated basis in





accordance with GAAP applied on a consistent basis: (a) cash, Cash Equivalents, plus (b), the quotient of (i) EBITDA for the four fiscal quarters of the Parent most recently ended, divided by (ii) the Capitalization Rate, plus (c) the GAAP book value of Properties acquired during the period of four fiscal quarters most recently ended, plus (d) the GAAP book value of all Development Properties, plus (e) the GAAP book value of Unimproved Land plus (f) the GAAP book value of all Mortgage Receivables and other promissory notes and plus (g) Capitalized Third Party Net Income; provided, however that to the extent that the Total Asset Value attributable to Capitalized Third Party Net Income would exceed 5.0% of Total Asset Value, such excess shall be excluded. The Parent’s Ownership Share of assets held by Unconsolidated Affiliates (excluding assets of the type described in the immediately preceding clause (a)) will be included in Total Asset Value calculations consistent with the above described treatment for assets of the Parent and its Consolidated Subsidiaries. For purposes of determining Total Asset Value, EBITDA from Properties acquired or disposed of during the period of four fiscal quarters of the Parent most recently ended shall be excluded. For purposes of determining Total Asset Value, the calculation of EBITDA shall exclude Third Party Net Income. To the extent the amount of Total Asset Value attributable to (x) Unimproved Land, Equity Interest in Person other than Consolidated Subsidiaries and Mortgage Receivables, in the aggregate, would exceed 20.0% of Total Asset Value, such excess shall be excluded and (y) Development Properties would exceed 15.0% of Total Asset Value, such excess shall be excluded.

(c)    The Credit Agreement is further amended by adding the following sentence at the end
of the definition of “LIBOR” set forth in Section 1.1.:

If LIBOR determined as provided above would be less t han zero, LIBOR shall be deemed to be zero.

(d)    The Credit Agreement is further amended by restating Section 9.1 .(a) in its entirety as follows:

(a)    [Intentionally Omitted.]

(e)    The Credit Agreement is further amended by restating Section 9.1 .(b) in its entirety as follows:
(b)    Ratio of Indebtedness to Total Asset Value. The Parent shall not permit the ratio of (i) Indebtedness of the Parent and its Consolidated Subsidiaries to (ii) Total Asset
Value to exceed 0.60 to 1.00 at any time. For purposes of calculating such ratio, (A) Indebtedness shall be adjusted by deducting an amount equal to the lesser of (1) the amount by which Unrestricted Cash exceeds $30,000,000 and (2) the amount of Indebtedness that by its
terms is scheduled to mature within 24 months, and (B) Total Asset Value shall be adjusted by deducting therefrom the amount by which Indebtedness is adjusted under the preceding clause
(A).






(f) The Credit Agreement is further amended by restating Section 9.1.(e) in its entirety as
follows:


(e)    Ratio of Secured Indebtedness to Total Asset Value. The Parent shall
not permit the ratio of (i) Secured Indebtedness of the Parent and its Consolidated Subsidiaries to (ii) Total Asset Value to exceed 0.35 to 1.00 at any time. For purposes of calculating such ratio, (A) Secured Indebtedness shall be adjusted by deducting an amount equal to the lesser of (1) the amount by which Unrestricted Cash exceeds
$30,000,000 and (2) the amount of Secured Indebtedness that by its terms is scheduled to mature within 24 months, and (B) Total Asset Value shall be adjusted by deducting
therefrom the amount by which Secured Indebtedness is adjusted under the preceding
clause (A).

(g) The Credit Agreement is further amended by restating Section 9.1.(g) in its entirety a s follows:

(g)    [Intentionally Omitted.]

Section 2. Conditions Precedent. The effectiveness of this Amendment is subject to receipt by the Administrative Agent of each of the following, each in form and substance satisfactory to the Administrative Agent:

(a) a counterpart of this Amendment duly executed by the Borrower, the Administrative
Agent and each of the Lenders;

(b) evidence that all fees, expenses and reimbursement amounts due and payable to the Administrative Agent and any of the Lenders, including without limitation, the fees and expenses of counsel to the Administrative Agent, have been paid; and

(c) such other documents, instruments and agreements as the Administrative Agent may reasonably request.

Section 3. Representations. The Borrower and the Parent represent and warrant to the
Administrative Agent and the Lenders that:

(a) Authorization. Each of the Borrower and the Parent has the right and power, and has taken all necessary action to authorize it, to execute and deliver this Amendment and to perform its obligations hereunder and under the Credit Agreement, as amended by this Amendment, in accordance with their respective terms. This Amendment has been duly executed and delivered by a duly authorized officer of the Borrower and the Parent and each of this Amendment and the Credit Agreement, as amended by this Amendment, is a legal, valid and binding obligation of the Borrower and the Parent enforceable against the Borrower and the Parent in accordance with its respective te rms except as (i) the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights generally and (ii) the availability of equitable remedies may be limited by equitable principles of general applicability.

(b) Compliance with Laws, etc. The execution and delivery by each of the Borrower and the Parent of this Amendment and the performance by the Borrower and the Parent of this Amendment and the Credit Agreement, as amended by this Amendment, in accordance wit h their respective terms, do not and will not, by the passage of time, the giving of notice or otherwise: (i) require any Governmental Approval or violate any Applicable Law (including Environmental Laws) relating to the Borrower or any other Loan Party; (ii) conflict with, result in a breach of or constitute a default under the organizational documents of the Borrower, the Parent, or any other Loan Party, or any







indenture, agreement or other instrument to which the Borrower, the Parent, or any other Loan Party is a party or by which it or any of its properties may be bound; or (iii) result in or require the creation or imposition of any Lien upon or with respect to any property now owned or hereafter acquired by the Borrower, the Parent, or any other Loan Party.

(c) No Default. No Default or Event of Default has occurred and is continuing as of the date hereof or will exist immediately after giving effect to this Amendment.

Section 4. Reaffirmation of Representations by Borrower and Parent . Each of the Parent and the Borrower hereby reaffirms that the representations and warranties made or deemed made by the Parent, the Borrower and each other Loan Party in the Loan Documents to which any of them is a party are true and correct in all material respects (except in the case of a representation or warranty qualified by materiality, in which case such representation or warranty is true and correct in all respects) on and as of the date hereof with the same force and effect as if made on and as of the date hereof except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties were true and correct in all material respects (except in the case of a representation or warranty qualified by materiality, in which case such representation or warranty was true and correct in all respects) on and as of such earlier date) and except for changes in factual circumstances specifically and expressly permitted under the Credit Agreement or the other Loan Documents..

Section 5. Reaffirmation of Guaranty by Parent. The Parent hereby reaffirms its continuing obligations to the Administrative Agent and the Lenders under the Guaranty and agrees that the transactions contemplated by this Amendment shall not in any way affect the validity and enforceability of the Guaranty, or reduce, impair or discharge the obligations of the Parent thereunder.

Section 6. Certain References. Each reference to the Credit Agreement in any of the Loan Documents shall be deemed to be a reference to the Credit Agreement as amended by this Amendment.

Section 7. Expenses. The Borrower shall reimburse the Administrative Agent upon demand for all reasonable costs and expenses (including reasonable attorneys’ fees) incurred by the Administrative Agent in connection with the preparation, negotiation and execution of this Amendment and the other agreements and documents executed and delivered in connection herewith.

Section 8. Benefits. This Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.

Section 9. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STAT E OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

Section 10. Effect. Except as expressly herein amended, the terms and conditions of the Credit Agreement and the other Loan Documents remain in full force and effe ct. The amendments contained herein shall be deemed to have prospective application only from the date as of which this Amendment is dated.

Section 11. Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original and shall be binding upon all parties, their successors and assigns.













Section 12. Definitions. All capitalized terms not otherwise defined herein are used herein with the respective definitions given them in the Credit Agreement as amended by this Amendment.

[Signatures on Next Page]





























































IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to Term
Loan Agreement to be executed as of the date first above written.
BORROWER:
                        REGENCY CENTERS, L.P.
 
 
 
 
 
By:
Regency Centers Corporation, Its sole general partner
 
 
By:
/s/ Scott R. Prigge      
Name: Scott R. Prigge Title: Senior Vice President
                                                           PARENT:
                                            REGENCY CENTERS CORPORATION,
 
 
 
 
 
By:
/s/ Scott R. Prigge      
Name: Scott R. Prigge Title: Senior Vice President


































[Signatures Continued on Next Page]








[Signature Page to Fourth Amendment to Term Loan Agreement for Regency Centers, LP.]

WELLS FARGO BANK, NATIONAL ASSOCIATION, as
Administrative Agent and as a Lender
 
 
 
 
 
By:
/s/ Andrew W Hussion     
Name: Andrew W. Hussion Title: Director














































[Signatures Continued on Next Page]





[Signature Page to Fourth Amendment to Term Loan Agreement for Regency Centers, LP.]

PNC BANK, NATIONAL ASSOCIATION, as a Lender
 
 
By:
/s/ Ken Carl  
Name: Ken Carl Title: Senior Vice President


















































[Signatures Continued on Next Page]





[Signature Page to Fourth Amendment to Term Loan Agreement for Regency Centers, LP.]
REGIONS BANK, as a Lender
 
 
By:
/s/ Kerri L. Raines                                                            Name: Kerri L. Raines Title: Senior Vice President














































[Signatures Continued on Next Page]






[Signature Page to Fourth Amendment to Term Loan Agreement for Regency Centers, LP.]
SUNTRUST BANK, as a Lender
 
 
By:
/s/ Danny Stover                                                                   Name: Danny Stover Title: Vice President













































[Signatures Continued on Next Page]






[Signature Page to Fourth Amendment to Term Loan Agreement for Regency Centers, LP.]
U.S. BANK NATIONAL ASSOCIATION, as a Lender
 
 
By:
/s/ J. Lee Hord                                                                   Name: J. Lee Hord Title: Senior Vice President


















































[Signatures Continued on Next Page]






[Signature Page to Fourth Amendment to Term Loan Agreement for Regency Centers, LP.]
BANK OF AMERICA, N.A., as a Lender
 
 
By:
/s/ Asad A. Rafiq  
Name: Asad A. Rafiq Title: Vice President


















































[Signatures Continued on Next Page]






[Signature Page to Fourth Amendment to Term Loan Agreement for Regency Centers, LP.]
JPMORGAN CHASE BANK, N.A., as a Lender
 
 
By:
/s/ Mohammad S Hasan  
Name: Mohammad S Hasan Title: Executive Director













































[Signatures Continued on Next Page]





[Signature Page to Fourth Amendment to Term Loan Agreement for Regency Centers, LP.]
ROYAL BANK OF CANADA, as a Lender
 
 
By:
/s/ Daniel LePage                                                               Name: Daniel LePage Title: Authorized Signatory














































[Signatures Continued on Next Page]





[Signature Page to Fourth Amendment to Term Loan Agreement for Regency Centers, LP.]
SUMITOMO MITSUI BANKING CORPORATION, as a Lender
 
 
By:
/s/ Keith J. Connolly                                                               Name: Keith J. Connolly Title: Managing Director














































[Signatures Continued on Next Page]






[Signature Page to Fourth Amendment to Term Loan Agreement for Regency Centers, LP.]

MIZUHO BANK, LTD, as a Lender
 
 
By:
/s/ Raymond Ventura                                                              Name: Raymond Ventura Title: Managing Director












































[Signatures Continued on Next Page]


Exhibit


Exhibit 12.1


Regency Centers Corporation and Regency Centers, L.P.
Computation of Ratio of Earnings to Fixed Charges
(in thousands)

 
 
Year Ended December 31,
 
 
2015
 
2014
 
2013
 
2012
 
2011
Fixed Charge Coverage Ratio:
 
 
 
 
 
 
 
 
 
 
Add: pre-tax income from continuing operations before adjustment for income or loss from equity investees and noncontrolling interests in consolidated subsidiaries
$
128,431

 
158,823

 
54,282

 
37,354

 
32,560

Add: fixed charges
 
113,697

 
120,963

 
119,264

 
120,534

 
133,973

Add: distributed income of equity investees
 
46,646

 
42,767

 
45,377

 
44,809

 
43,361

Subtract: capitalized interest
 
(6,740
)
 
(7,142
)
 
(6,078
)
 
(3,686
)
 
(1,480
)
Subtract: preference security dividend requirements of consolidated subsidiaries
 

 

 

 
(404
)
 
(3,725
)
Subtract: noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges
 
(764
)
 
(471
)
 
(323
)
 
(112
)
 
(55
)
Total earnings
$
281,270

 
314,940

 
212,522

 
198,495

 
204,634

 
 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
 
Interest expensed and capitalized
$
109,602

 
116,067

 
113,799

 
114,198

 
124,707

Amortized premiums, discounts and capitalized expenses related to indebtedness
 
1,350

 
1,776

 
2,887

 
3,292

 
2,860

Estimate of the interest within rental expense
 
2,745

 
3,120

 
2,577

 
2,639

 
2,680

Preference security dividend requirements of consolidated subsidiaries
 

 

 

 
404

 
3,725

Total fixed charges
$
113,697

 
120,963

 
119,263

 
120,533

 
133,972

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
2.5

 
2.6

 
1.8

 
1.6

 
1.5





1




Regency Centers Corporation and Regency Centers, L.P.
Computation of Ratio of Combined Fixed Charges and Preference Dividends to Earnings
(in thousands)

 
 
Year Ended December 31,
 
 
2015
 
2014
 
2013
 
2012
 
2011
Combined Fixed Charges and Preference Dividends Coverage Ratio:
 
 
 
 
 
 
 
 
 
 
Add: pre-tax income from continuing operations before adjustment for income or loss from equity investees and noncontrolling interests in consolidated subsidiaries
$
128,431

 
158,823

 
54,282

 
37,354

 
32,560

Add: fixed charges
 
134,759

 
142,025

 
140,325

 
143,787

 
153,647

Add: distributed income of equity investees
 
46,646

 
42,767

 
45,377

 
44,809

 
43,361

Subtract: capitalized interest
 
(6,740
)
 
(7,142
)
 
(6,078
)
 
(3,686
)
 
(1,480
)
Subtract: preference dividends
 
(21,062
)
 
(21,062
)
 
(21,062
)
 
(23,658
)
 
(23,400
)
Subtract: noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges
 
(764
)
 
(471
)
 
(323
)
 
(112
)
 
(55
)
Earnings
$
281,270

 
314,940

 
212,521

 
198,494

 
204,633

 
 
 
 
 
 
 
 
 
 
 
Fixed Charges and Preference Dividend Data:
 
 
 
 
 
 
 
 
 
 
Interest expensed and capitalized
$
109,602

 
116,067

 
113,799

 
114,198

 
124,707

Amortized premiums, discounts and capitalized expenses related to indebtedness
 
1,350

 
1,776

 
2,887

 
3,292

 
2,860

Estimate of the interest within rental expense
 
2,745

 
3,120

 
2,577

 
2,639

 
2,680

Preference dividends
 
21,062

 
21,062

 
21,062

 
23,658

 
23,400

Total fixed charges and preference dividends
$
134,759

 
142,025

 
140,325

 
143,787

 
153,647

 
 
 
 
 
 
 
 
 
 
 
Ratio of combined fixed charges and preference dividends to earnings
 
2.1

 
2.2

 
1.5

 
1.4

 
1.3



2
Exhibit
REGENCY CENTERS CORPORATION
Subsidiaries

Entity
Jurisdiction
Owner(s)
Nature of Interest (1)
% of
Ownership
Regency Centers, L.P.
Delaware
Regency Centers Corporation
Outside Investors
General Partner
Limited Partners
99.0%
1.0%
Columbia Cameron Village SPE, LLC
Delaware
Regency Centers, L.P.
Columbia Perfco Partners, L.P.
Managing Member
Member
30%
70%
Columbia Cameron Village, LLC
Delaware
Columbia Cameron Village SPE, LLC
Member
100%
Columbia Regency Retail Partners, LLC
Delaware
Regency Centers, L.P.
Columbia Perfco Partners, L.P.
Managing Member
Member
20%
80%
Columbia Crossroads Commons, LLC
Delaware
Columbia Regency Retail Partners, LLC
Member
100%
Columbia Retail Dulles, LLC
Delaware
Columbia Regency Retail Partners, LLC
Member
100%
Columbia Retail Geneva Crossing, LLC
Delaware
Columbia Regency Retail Partners, LLC
Member
100%
Columbia Retail Shorewood Crossing, LLC
Delaware
Columbia Regency Retail Partners, LLC
Member
100%
Columbia Retail Special Member (GLP), LLC
Delaware
Columbia Perfco, L.P.
Regency Centers, L.P.
Member
Managing Member
80%
20%
Columbia Retail Stearns Crossing, LLC
Delaware
Columbia Regency Retail Partners, LLC
Member
100%
Columbia Retail Texas 3, LLC
Delaware
Columbia Regency Retail Partners, LLC
Member
100%
Columbia Retail Sweetwater Plaza, LP
Delaware
Columbia Retail Texas 3, LLC
Columbia Regency Retail Partners, LLC
General Partner
Limited Partner
1%
99%
Columbia Retail Washington 1, LLC
Delaware
Columbia Regency Retail Partners, LLC
Member
100%
Columbia Cascade Plaza, LLC
Delaware
Columbia Retail Washington 1, LLC
Member
100%
Columbia Julington Village, LLC
Delaware
Columbia Regency Retail Partners, LLC
Member
100%
Columbia Palm Valley Marketplace, LLC
Delaware
Columbia Regency Retail Partners, LLC
Member
100%
Columbia Regency Partners II, LLC
Delaware
Regency Centers, L.P.
Columbia Perfco Partners, L.P.
Managing Member
Member
20%
80%
Columbia II Broadway Market, LLC
Delaware
Columbia Regency Partners II, LLC
Member
100%
Columbia II Burnt Mills Shopping Center, LLC
Delaware
Columbia Regency Partners II, LLC
Member
100%
Columbia Cochran Commons, LLC
Delaware
Columbia Regency Partners II, LLC
Member
100%
Hollymead Town Center, LLC
Delaware
Columbia Regency Partners II, LLC
Member
100%
Columbia II Hollymead, LLC
Delaware
Hollymead Town Center, LLC
Member
100%
Columbia II Johns Creek, LLC
Delaware
Columbia Regency Partners II, LLC
Member
100%
Columbia Lorton Station Marketplace Member, LLC
Delaware
Columbia Regency Partners II, LLC
Member
100%
Columbia Lorton Station Marketplace, LLC
Delaware
Columbia Lorton Station Marketplace Member, LLC
Member
100%
Columbia Lorton Station Town Center, LLC
Delaware
Columbia Regency Partners II, LLC
Member
100%
Columbia II Marina Shores, LLC
Delaware
Columbia Regency Partners II, LLC
Member
100%
Columbia Plantation Plaza Member, LLC
Delaware
Columbia Regency Partners II, LLC
Member
100%
Columbia Plantation Plaza, LLC
Delaware
Columbia Plantation Plaza Member, LLC
Member
100%
Columbia Rockridge Center, LLC
Delaware
Columbia Regency Partners II, LLC
Member
100%
Columbia II Rockridge Center, LLC
Delaware
Columbia Regency Partners II, LLC
Member
100%
Columbia Shorewood Crossing Phase 2 Member, LLC
Delaware
Columbia Regency Partners II, LLC
Member
100%
Columbia Shorewood Crossing Phase 2, LLC
Delaware
Columbia Shorewood Crossing Phase 2 Member, LLC
Member
100%
Columbia Shorewood Crossing Phase 3, LLC
Delaware
Columbia Regency Partners II, LLC
Member
100%
Signal Hill Two, LLC
Delaware
Columbia Regency Partners II, LLC
Member
100%
Columbia II Signal Hill, LLC
Delaware
Signal Hill Two, LLC
Member
100%

1

REGENCY CENTERS CORPORATION
Subsidiaries

Entity
Jurisdiction
Owner(s)
Nature of Interest (1)
% of
Ownership
Columbia Speedway Plaza Member, LLC
Delaware
Columbia Regency Partners II, LLC
Member
100%
Columbia Speedway Plaza, LLC
Delaware
Columbia Speedway Plaza Member, LLC
Member
100%
Columbia Sutton Square, LLC
Delaware
Columbia Regency Partners II, LLC
Member
100%
Columbia II Holding, LLC
Delaware
Columbia Regency Partners II, LLC
Member
100%
Columbia II Island Crossing, LLC
Delaware
Columbia II Holding, LLC
Member
100%
Columbia II King Plaza, LLC
Delaware
Columbia II Holding, LLC
Member
100%
Columbia II Lost Mountain, LLC
Delaware
Columbia II Holding, LLC
Member
100%
Columbia II Raley’s Center, LLC
Delaware
Columbia II Holding, LLC
Member
100%
Columbia II Surfside Beach Commons, LLC
Delaware
Columbia II Holding, LLC
Member
100%
Columbia II Village Plaza, LLC
Delaware
Columbia Regency Partners II, LLC
Member
100%
 
 
 
 
 
GRI-Regency, LLC
Delaware
Global Retail Investors, LLC
Regency Centers, L.P.
Member
Managing Member
60%
40%
FW PA-Mercer Square, LLC
Delaware
GRI-Regency, LLC
Member
100%
FW PA-Newtown Square, LLC
Delaware
GRI-Regency, LLC
Member
100%
FW PA-Warwick Plaza, LLC
Delaware
GRI-Regency, LLC
Member
100%
MCW-RC SC-Merchant’s, LLC (fka MCW-RC South Carolina, LLC)
Delaware
GRI-Regency, LLC
Member
100%
MCW-RC SC-Merchant’s Village Member, LLC
Delaware
MCW-RC SC-Merchant’s, LLC
Member
100%
MCW-RC SC-Merchant’s Village, LLC
Delaware
MCW-RC SC-Merchant’s Village Member, LLC
Member
100%
FW CA-Brea Marketplace Member, LLC
Delaware
GRI-Regency, LLC
Member
100%
FW CA-Brea Marketplace, LLC
Delaware
FW CA-Brea Marketplace Member, LLC
Member
100%
U.S. Retail Partners Holding, LLC
Delaware
GRI-Regency, LLC
Member
100%
U.S. Retail Partners Member, LLC
Delaware
GRI-Regency, LLC
Member
100%
U.S. Retail Partners, LLC
Delaware
U.S. Retail Partners Holding, LLC
U.S. Retail Partners Member, LLC
Managing Member
Member
1%
99%
FW CO-Arapahoe Village, LLC
Delaware
U.S. Retail Partners, LLC
Member
100%
FW CO-Cherrywood Square, LLC
Delaware
U.S. Retail Partners, LLC
Member
100%
FW CO-Ralston Square, LLC
Delaware
U.S. Retail Partners, LLC
Member
100%
FW MN-Colonial Square, LLC
Delaware
U.S. Retail Partners, LLC
Member
100%
FW MN-Rockford Road, LLC
Delaware
U.S. Retail Partners, LLC
Member
100%
USRP I Holding, LLC
Delaware
GRI-Regency, LLC
Member
100%
USRP I Member, LLC
Delaware
GRI-Regency, LLC
Member
100%
USRP I, LLC
Delaware
USRP I Holding, LLC
USRP I Member, LLC
Managing Member
Member
1%
99%
FW NJ-Plaza Square, LLC
Delaware
USRP I, LLC
Member
100%
FW VA-Greenbriar Town Center, LLC
Delaware
USRP I, LLC
Member
100%
FW VA-Festival at Manchester, LLC
Delaware
USRP I, LLC
Member
100%
FW-Reg II Holdings, LLC
Delaware
GRI-Regency, LLC
Member
100%
FW CA-Auburn Village, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW CA-Bay Hill Shopping Center, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW CA-Five Points Shopping Center, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW CA-Mariposa Gardens Shopping Center, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%

2

REGENCY CENTERS CORPORATION
Subsidiaries

Entity
Jurisdiction
Owner(s)
Nature of Interest (1)
% of
Ownership
FW CA-Navajo Shopping Center, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW CA-Point Loma Plaza, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW CA-Rancho San Diego Village, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW CA-Silverado Plaza, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW CA-Snell & Branham Plaza, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW CA-Twin Oaks Shopping Center, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW CA-Ygnacio Plaza, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW CT-Corbins Corner Shopping Center, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW DC-Spring Valley Shopping Center, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW IL-Brentwood Commons, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW IL-Riverside/Rivers Edge, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW IL-Riverview Plaza, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW IL-Stonebrook Plaza, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
USRP Willow East, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
USRP Willow West, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW VA-Ashburn Farm Village Center, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW VA-Centre Ridge Marketplace, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW VA-Fox Mill Shopping Center, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW VA-Kings Park Shopping Center, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW VA-Saratoga Shopping Center, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW VA-The Village Shopping Center, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW WA-Aurora Marketplace, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW WA-Eastgate Plaza, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW WA-Overlake Fashion Plaza, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
FW WI-Whitnall Square, LLC
Delaware
FW-Reg II Holdings, LLC
Member
100%
Parkville Shopping Center, LLC
Maryland
FW-Reg II Holdings, LLC
Member
100%
FW-Reg II Holding Company Two, LLC
Delaware
GRI-Regency, LLC
Member
100%
FW CA-Granada Village, LLC
Delaware
FW-Reg II Holding Company Two, LLC
Member
100%
FW CA-Laguna Niguel Plaza, LLC
Delaware
FW-Reg II Holding Company Two, LLC
Member
100%
FW CA-Pleasant Hill Shopping Center, LLC
Delaware
FW-Reg II Holding Company Two, LLC
Member
100%
FW IL-Civic Center Plaza, LLC
Delaware
FW-Reg II Holding Company Two, LLC
Member
100%
FW IL-McHenry Commons Shopping Center, LLC
Delaware
FW-Reg II Holding Company Two, LLC
Member
100%
FW IN-Willow Lake West, LLC
Delaware
FW-Reg II Holding Company Two, LLC
Member
100%
FW NJ-Westmont Shopping Center, LLC
Delaware
FW-Reg II Holding Company Two, LLC
Member
100%
FW NC-Shoppes of Kildaire, LLC
Delaware
FW-Reg II Holding Company Two, LLC
Member
100%
FW OR-Greenway Town Center, LLC
Delaware
FW-Reg II Holding Company Two, LLC
Member
100%
FW WI Racine Centre, LLC
Delaware
FW-Reg II Holding Company Two, LLC
Member
100%
USRP LP, LLC
Delaware
GRI-Regency, LLC
Member
100%

3

REGENCY CENTERS CORPORATION
Subsidiaries

Entity
Jurisdiction
Owner(s)
Nature of Interest (1)
% of
Ownership
USRP GP, LLC
Delaware
GRI-Regency, LLC
Member
100%
US Retail Partners Limited Partnership
Delaware
USRP GP, LLC
USRP LP, LLC
Preferred Partners
General Partner
Limited Partner
Limited Partners
1%
99%
profit sharing
FW MD Woodmoor Borrower, LLC
Delaware
US Retail Partners Limited Partnership
Member
100%
FW VA-Willston Centre II, LLC
Delaware
US Retail Partners Limited Partnership
Member
100%
Enterprise Associates
Maryland
USRP GP, LLC
US Retail Partners Limited Partnership
General Partner
Limited Partner
1%
99%
FW Bowie Plaza GP, LLC
Delaware
GRI-Regency, LLC
Member
100%
Capitol Place I Investment Limited Partnership
Maryland
FW Bowie Plaza GP, LLC
Eastern Shopping Centers I, LLC
General Partner
Limited Partner
1%
99%
FW Elkridge Corners GP, LLC
Delaware
GRI-Regency, LLC
Member
100%
L and M Development Company Limited Partnership
Maryland
FW Elkridge Corners GP, LLC
Eastern Shopping Centers I, LLC
General Partner
Limited Partner
1%
99%
FW Woodholm GP, LLC
Delaware
GRI-Regency, LLC
Member
100%
Woodholme Properties Limited Partnership
Maryland
FW Woodholm GP, LLC
Eastern Shopping Centers I, LLC
General Partner
Limited Partner
1%
99%
FW Woodholme Borrower, LLC
Delaware
Woodholme Properties Limited Partnership
Member
100%
FW Southside Marketplace GP, LLC
Delaware
GRI-Regency, LLC
Member
100%
Southside Marketplace Limited Partnership
Maryland
FW Southside Marketplace GP, LLC
Eastern Shopping Centers I, LLC
General Partner

Limited Partner
1%
99%
FW Southside Marketplace Borrower, LLC
Delaware
Southside Marketplace Limited Partnership
Member
100%
FW Valley Centre GP, LLC
Delaware
GRI-Regency, LLC
Member
100%
Greenspring Associates Limited Partnership
Maryland
FW Valley Centre GP, LLC
Eastern Shopping Centers I, LLC
General Partner

Limited Partner
1%
99%
FW MD-Greenspring Borrower, LLC
Delaware
Greenspring Associates Limited Partnership
Member
100%
Eastern Shopping Centers I, LLC
Delaware
GRI-Regency, LLC
Member
100%
Cloppers Mill Village Center, LLC
Maryland
GRI-Regency, LLC
Eastern Shopping Centers I, LLC
Member
100%
City Line Shopping Center Associates
Pennsylvania
US Retail Partners Limited Partnership
City Line LP, LLC
General Partner
Limited Partner
1%
99%
City Line LP, LLC
Delaware
USRP LP, LLC
Member
100%
FW Allenbeth GP, LLC
Delaware
GRI-Regency, LLC
Member
100%
Allenbeth Associates Limited Partnership
Maryland
FW Allenbeth GP, LLC
Eastern Shopping Centers I, LLC
General Partner
Limited Partner
1%
99%
FW Weslyan GP, LLC
Delaware
GRI-Regency, LLC
Member
100%
FW TX-Weslyan Plaza, L.P.
Delaware
FW Weslyan GP, LLC
FW Texas LP, LLC
General Partner
Limited Partner
1%
99%
FW Woodway GP, LLC
Delaware
GRI-Regency, LLC
Member
100%
FW TX-Woodway Collection, L.P.
Delaware
FW Woodway GP, LLC
FW Texas LP, LLC
General Partner
Limited Partner
1%
99%
FW Gayton Crossing Holding, LLC
Delaware
GRI-Regency, LLC
Member
100%
FW VA-Gayton Crossing Shopping Center, LLC
Delaware
FW Gayton Crossing Holding, LLC
Member
100%
MCW RC III Hilltop Village Member, LLC
Delaware
Regency Centers, L.P.
Member
100%
MCW RC III Hilltop Village, LLC
Delaware
MCW RC III Hilltop Village Member, LLC
Member
100%
MCW-RD Brentwood Plaza, LLC
Delaware
Regency Centers, L.P.
Member
100%
MCW-RD Bridgeton, LLC
Delaware
Regency Centers, L.P.
Member
100%
MCW-RD Dardenne Crossing, LLC
Delaware
Regency Centers, L.P.
Member
100%
MCW-RD Kirkwood Commons Member, LLC
Delaware
Regency Centers, L.P.
Member
100%

4

REGENCY CENTERS CORPORATION
Subsidiaries

Entity
Jurisdiction
Owner(s)
Nature of Interest (1)
% of
Ownership
MCW-RD Kirkwood Commons, LLC
Delaware
MCW-RD Kirkwood Commons Member, LLC
Member
100%
RegCal, LLC
Delaware
California State Teachers Retirement System
Regency Centers, L.P.
Member

Managing Member
75%

25%
RegCal Holding, LLC
Delaware
RegCal, LLC
Member
100%
CAR Apple Valley Square Member, LLC
Delaware
RegCal, LLC
Member
100%
CAR Apple Valley Square, LLC
Delaware
CAR Apple Valley Square Member, LLC
Member
100%
CAR Apple Valley Land, LLC
Delaware
RegCal, LLC
Member
100%
CAR Braemar Village, LLC
Delaware
RegCal, LLC
Member
100%
CAR Calhoun Commons, LLC
Delaware
RegCal, LLC
Member
100%
CAR Corral Hollow, LLC
Delaware
RegCal Holding, LLC
Member
100%
Five Corners Plaza Member, LLC
Delaware
RegCal, LLC
Member
100%
CAR Five Corners Plaza, LLC
Delaware
Five Corners Plaza Member, LLC
Member
100%
CAR Fuquay Crossing, LLC
Delaware
RegCal, LLC
Member
100%
CAR Providence Commons, LLC
Delaware
RegCal, LLC
Member
100%
CAR Shops at the Columbia, LLC
Delaware
RegCal, LLC
Member
100%
KF-REG Holding, LLC
Delaware
RegCal, LLC
Member
100%
KF-REG Associates, LLC
Delaware
KF-REG Holding, LLC
Member
100%
King Farm Center, LLC
Delaware
KF-REG Associates, LLC
Member
100%
 
 
 
 
 
US Regency Retail REIT I
Texas
US Southern Retail, LLC
US Republic Core Fund, L.P.
Regency Centers, L.P.
Common Stock
Common Stock
Common Stock
57.27%
23.53%
19.20%
US Regency Retail I, LLC
Delaware
US Regency Retail REIT I
Regency Centers, L.P.
Member
Managing Member
99%
1%
RC FL-Anastasia, LLC (fka MCW-RC FL-Anastasia, LLC)
Delaware
Regency Centers, L.P.
Member
100%
RC-FL King’s Crossing, LLC (fka MCW-RC FL-King’s, LLC and fka MCW-RC Florida, LLC)
Delaware
Regency Centers, L.P.
Member
100%
RC FL-Shoppes at 104, LLC (fka MCW-RC FL-Shoppes at 104, LLC)
Delaware
Regency Centers, L.P.
Member
100%
RC GA-Howell Mill, LLC (fka MCW-RC GA-Howell Mill Village, LLC)
Delaware
Regency Centers, LLC
Member
100%
MCD-RC CA-Amerige, LLC
Delaware
Regency Centers, L.P.
Member
100%
MCD-RC El Cerrito Holdings, LLC
Delaware
Regency Centers, L.P.
Member
100%
MCD-RC CA-El Cerrito, LLC
Delaware
MCD-RC El Cerrito Holdings, LLC
Member
100%
REG8 Member, LLC
Delaware
Regency Centers, L.P.
Member
100%
REG8 Tassajara Crossing, LLC
Delaware
REG8 Member, LLC
Member
100%
REG8 Plaza Hermosa, LLC
Delaware
REG8 Member, LLC
Member
100%
REG8 Sequoia Station, LLC
Delaware
REG8 Member, LLC
Member
100%
REG8 Mockingbird Commons, LLC
Delaware
REG8 Member, LLC
Member
100%
REG8 Sterling Ridge, LLC
Delaware
REG8 Member, LLC
Member
100%
REG8 Prestonbrook Crossing, LLC
Delaware
REG8 Member, LLC
Member
100%
REG8 Wellington, LLC
Delaware
REG8 Member, LLC
Member
100%
REG8 Berkshire Commons, LLC
Delaware
REG8 Member, LLC
Member
100%
FL-Corkscrew Village Member, LLC
Delaware
Regency Centers, L.P.
Member
100%
FL-Corkscrew Village, LLC
Delaware
FL-Corkscrew Village Member, LLC
Member
100%
FL-Naples Walk Shopping Center Member, LLC
Delaware
Regency Centers, L.P.
Member
100%

5

REGENCY CENTERS CORPORATION
Subsidiaries

Entity
Jurisdiction
Owner(s)
Nature of Interest (1)
% of
Ownership
FL-Naples Walk Shopping Center, LLC
Delaware
FL-Naples Walk Shopping Center Member, LLC
Member
100%
FL-Northgate Square Member, LLC
Delaware
Regency Centers, L.P.
Member
100%
FL-Northgate Square, LLC
Delaware
FL-Northgate Square Member, LLC
Member
100%
FL-Westchase Center Member, LLC
Delaware
Regency Centers, L.P.
Member
100%
FL-Westchase Center, LLC
Delaware
FL-Westchase Center Member, LLC
Member
100%
 
 
 
 
 
19330 Hawthorne, LLC
Delaware
Regency Centers, L.P.
Member
100%
1C Tustin Legacy, LLC
Delaware
Regency Centers, L.P.
Member
100%
60617 Balboa Mesa, LLC
Delaware
Regency Centers, L.P.
Member
100%
4S Regency Partners, LLC
Delaware
Regency Centers, L.P.
4S Ranch Company 1700, L.P.
Member
Member
80%
20%
Alba Village Regency, LLC
Delaware
Regency Centers, L.P.
Northgate Center Phase I, LLC
Member
Member
Varies
Bammel North Houston Center, Ltd.
Texas
Regency Centers, L.P.
HEB Grocery Company, LP
General Partner
Limited Partner
Varies
Bartram Park Center, LLC
Delaware
Regency Centers, L.P.
Real Sub, LLC
Managing Member
Member
Varies
Bedford Regency, LLC
Delaware
Regency Centers, L.P.
Member
100%
Belleview Square, LLC
Delaware
Regency Centers, L.P.
Member
100%
Belmont Chase, LLC
Delaware
Regency Centers, L.P.
Member
100%
Bridges Insurance Company
South Carolina
Regency Centers, L.P.
Shareholder
100%
Buckwalter Bluffton, LLC
Delaware
Regency Centers, L.P.
Member
100%
Caligo Crossing, LLC
Delaware
Regency Centers, L.P.
Member
100%
CityLine-REG, LLC
Delaware
Regency Centers, L.P.
Member
100%
Clayton Valley Shopping Center, LLC
Delaware
Regency Centers, L.P.
Member
100%
Clybourn Commons-REG, LLC
Delaware
Regency Centers, L.P.
Member
100%
Colonnade Regency, L.P.
Delaware
Regency NC GP, LLC
Regency Centers, L.P.
General Partner
Limited Partner
1%
99%
Conroe/White Oak Marketplace, Ltd.
Texas
Regency Centers, L.P.
HEB Grocery Co., L.P.
General Partner
Limited Partner
Varies
Corvallis Market Center, LLC
Delaware
Regency Centers, L.P.
Member
100%
CPGPI Regency Erwin, LLC
Delaware
Regency Centers, L.P.
CPGPI Erwin Retail, LLC
Managing Member
Member
Varies
Deer Springs Town Center, LLC
Delaware
Regency Centers, L.P.
Member
100%
East Towne Center, LLC
Delaware
Regency Centers, L.P.
Lake McLeod, LLC
Managing Member
Member
Varies
Fairfax Regency, LLC
Delaware
Regency Centers, L.P.
J. Donegan Company
Managing Member
Member
Varies
Fairhope, LLC
Delaware
Regency Centers, L.P.
Member
100%
Fellsway Associates Holdings Company, LLC
Delaware
Regency Centers, L.P.
Charter Fellsway, LLC
Charter Fellsway Group, LLC
Member
Member
Member
75%
24%
1%
Fellsway Associates, LLC
Delaware
Fellsway Associates Holdings Company, LLC
Member
100%
Fellsway Property, LLC
Delaware
Fellsway Associates Holdings Company, LLC
Member
100%
Fontainebleau Square, LLC
Delaware
Regency Centers, L.P.
Member
100%
Fortuna Regency Phase II, LLC
Delaware
Regency Centers, L.P.
Member
100%
FV Commons, LLC
Delaware
Regency Centers, L.P.
Member
100%
Garden City Park, LLC
Delaware
Regency Centers, L.P.
Member
100%
Gateway 101, LLC
Delaware
Regency Centers, L.P.
Member
100%

6

REGENCY CENTERS CORPORATION
Subsidiaries

Entity
Jurisdiction
Owner(s)
Nature of Interest (1)
% of
Ownership
Gateway Azco GP, LLC
Delaware
Regency Centers, L.P.
Member
100%
Gateway Azco LP, LLC
Delaware
Regency Centers, L.P.
Member
100%
AZCO Partners
Pennsylvania
Gateway Azco Partners GP, LLC
Gateway Azco LP, LLC
General Partner
Limited Partner
1%
99%
Glen Oak Glenview, LLC
Delaware
Regency Centers, L.P.
Member
100%
Glenview-REG, LLC
Delaware
Regency Centers, L.P.
Member
100%
Grand Ridge Plaza I, LLC
Delaware
Regency Centers, L.P.
Member
100%
Grand Ridge Plaza II, LLC
Delaware
Regency Centers, L.P.
Member
100%
Hibernia North, LLC
Delaware
Regency Centers, L.P.
Member
100%
Hickory Creek Plaza, LLC
Delaware
Regency Centers, L.P.
Member
100%
Hoadly Regency, LLC
Delaware
Regency Centers, L.P.
Member
100%
Holly Park Property, LLC
Delaware
Regency Centers, L.P.
Purser HP, LLC
Managing Member
Member
99.273%
.0727%
Hunters Lake Tampa, LLC
Delaware
Regency Centers, L.P.
Harrison Bennett Properties, LLC
Managing Member
Member
see below Ownership is as allocated in the JV Agreement
Indian Springs at Woodlands, Ltd.
Texas
Indian Springs GP, LLC
Regency Centers, L.P.
General Partner
Limited Partner
0.1%
99.9%
Indio Jackson, LLC
Delaware
Regency Centers, L.P.
Member
100%
Kent Place Regency, LLC
Delaware
Regency Centers, L.P.
Kent Place Investors, LLC
Managing Member
Member
Varies
La Floresta Regency, LLC
Delaware
Regency Centers, L.P.
Member
100%
Lee Regency, LLC
Delaware
Regency Centers, L.P.
Member
100%
Lonestar Investment Holdings, LLC
Delaware
Regency Centers, L.P.
Member
100%
The Marketplace at Briargate, LLC
Delaware
Regency Centers, L.P.
Member
100%
Menifee Marketplace, LLC
Delaware
Regency Centers, L.P.
Member
100%
Murfreesboro North, LLC
Delaware
Regency Centers, L.P.
Member
100%
NSHE Winnebago, LLC
Arizona
Regency Centers, L.P.
Member
100%
NTC-REG, LLC
Delaware
Regency Centers, L.P.
Member
100%
New Smyrna Regency, LLC
Delaware
Regency Centers, L.P.
Member
100%
New Windsor Marketplace, LLC
Delaware
Regency Centers, L.P.
Member
100%
Northlake Village Shopping Center, LLC
Florida
Regency Centers, L.P.
Member
100%
Oakshade Regency, LLC
Delaware
Regency Centers, L.P.
Member
100%
Ocala Corners, LLC
Delaware
Regency Centers, L.P.
Member
100%
Ocala Retail Partners, LLC
Delaware
Regency Centers, L.P.
Real Sub, LLC
Member
Member
50%
50%
Otay Mesa Crossing, LLC
Delaware
Regency Centers, L.P.
Member
100%
Parmer Tech Ridge, LLC
Delaware
Regency Centers, L.P.
Member
100%
Parmer Tech Ridge Parcel 2, LLC
Delaware
Regency Centers, L.P.
Member
100%
Phillips Place Partners, LLC
North Carolina
Regency Centers, L.P.
John Harris
Phillips Place Management Company
Member
Member
Member
50%
49%
1%
Pinecrest Regency, LLC
Delaware
Regency Centers, L.P.
Member
100%
Queensboro Associates, L.P.
Georgia
Regency Centers, L.P.
Real Sub, LLC
General Partner
Limited Partner
50%
50%
Regency Centers Acquisitions, LLC
Delaware
Regency Centers, L.P.
Member
100%
Regency Centers Advisors, LLC
Florida
Regency Centers, L.P.
Member
100%
RC Georgia Holdings, LLC
Georgia
Regency Centers, L.P.
Member
100%
Red Bank Village, LLC
Delaware
Regency Centers, L.P.
Member
100%
Regency Alliance Santa Rosa
Delaware
Regency Centers, L.P.
Member
100%

7

REGENCY CENTERS CORPORATION
Subsidiaries

Entity
Jurisdiction
Owner(s)
Nature of Interest (1)
% of
Ownership
Regency Centers Georgia, L.P.
Georgia
RC Georgia Holdings, LLC
Regency Centers, L.P.
General Partner
Limited Partner
1%
99%
Regency Blue Ash, LLC
Delaware
Regency Centers, L.P.
Member
100%
Regency Cahan Clovis, LLC
Delaware
Regency Centers, L.P.
Member
100%
Regency Grand Parkway/290 Retail, Ltd.
Delaware
Regency Centers, L.P.
General Partner
 
Regency Marinita-LaQuinta, LLC
Delaware
Regency Centers, L.P.
Marinita Development Co.
Managing Member
Member
Interests Vary
Regency NC GP, LLC
Delaware
Regency Centers, L.P.
Member
100%
Regency Opitz, LLC
Delaware
Regency Centers, L.P.
Member
100%
Regency-Kleban Properties, LLC
Delaware
Regency Centers, L.P.
Brick Walk Associates, LLC
Pine Tree Ventures, LLC
Bright Star, LLC
1261 Post Road Associates, LLC
Kleban Holding Company, LLC
Kleban Holding Company II, LLC
Kleban Fairfield, LLC
Alida Kleban Holding Company, LLC
Sun Realty Associates, LLC
Kleban Development Company
FBW, LLC
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
80.0000%
5.1676%
1.1789%
0.9871%
1.3768%
2.6451%
0.7769%
1.1790%
0.8306%
3.9009%
0.4598%
1.4973%
R-K Brick Walk I, LLC
Delaware
Regency-Kleban Properties, LLC
Member
100%
R-K Brick Walk II, LLC
Delaware
Regency-Kleban Properties, LLC
Member
100%
R-K Brick Walk III, LLC
Delaware
Regency-Kleban Properties, LLC
Member
100%
R-K Brick Walk IV, LLC
Delaware
Regency-Kleban Properties, LLC
Member
100%
R-K Brick Walk V, LLC
Delaware
Regency-Kleban Properties, LLC
Member
100%
R-K Fairfield I, LLC
Delaware
Regency-Kleban Properties, LLC
Member
100%
R-K Fairfield IV, LLC
Delaware
Regency-Kleban Properties, LLC
Member
100%
R-K Fairfield V, LLC
Delaware
Regency-Kleban Properties, LLC
Member
100%
R-K Black Rock I, LLC
Delaware
Regency-Kleban Properties, LLC
Member
100%
R-K Black Rock II, LLC
Delaware
Regency-Kleban Properties, LLC
Member
100%
R-K Black Rock III, LLC
Delaware
Regency-Kleban Properties, LLC
Member
100%
Regency Petaluma, LLC
Delaware
Regency Centers, L.P.
Member
100%
Regency Remediation, LLC
Florida
Regency Centers, L.P.
Member
100%
Regency Village at Dublin, LLC
Delaware
Regency Centers, L.P.
Member
100%
Regency Woodlands/Kuykendahl Retail, Ltd.
Texas
Regency Centers, L.P.
General Partner
Limited Partner
50%
50%
Sandy Springs Regency, LLC
Delaware
Regency Centers, L.P.
Member
100%
SEPR Regency, LLC
Delaware
Regency Centers, L.P.
Member
100%
Shops at Saugus, LLC
Delaware
Regency Centers, L.P.
Member
100%
Shops at Mira Vista Regency, LLC
Delaware
Regency Centers, L.P.
Member
100%
Shoppes on Riverside Jax, LLC
Delaware
Regency Centers, L.P.
Fuqua Development Jacksonville, LLC
Member
Member
Interests Vary
Signature Plaza, LLC
Delaware
Regency Centers, L.P.
Member
100%
Southpark Cinco Ranch, LLC
Delaware
Regency Centers, L.P.
Southpark HRC, LLC
Managing Member
Member
Varies
Spring Hill Town Center, LLC
Delaware
Regency Centers, L.P.
Member
100%
T&R New Albany Development Company, LLC
Ohio
Regency Centers, L.P.
Topvalco
Managing Member
Member
50%
50%
Tinwood, LLC
Delaware
Regency Centers, L.P.
Real Sub, LLC
Managing Member
Member
50%
50%
Tinwood-Lynn Haven, LLC
Delaware
Tinwood, LLC
Member
100%
Tinwood-Pebblebrooke, LLC
Delaware
Tinwood, LLC
Member
100%
Twin City Plaza Member, LLC
Delaware
Regency Centers, L.P.
Member
100%

8

REGENCY CENTERS CORPORATION
Subsidiaries

Entity
Jurisdiction
Owner(s)
Nature of Interest (1)
% of
Ownership
Twin City Plaza, LLC
Delaware
Twin City Plaza Member, LLC
Member
100%
UC Shopping Center, LLC
Delaware
Regency Centers, L.P.
Member
100%
Uncommon, LLC
Delaware
Regency Centers, L.P.
Member
100%
Uptown Member, LLC
Delaware
Regency Centers, L.P.
Member
100%
Uptown District Regency, LLC
Delaware
Uptown Member, LLC
Member
100%
Valleydale, LLC
Delaware
Regency Centers, L.P.
Real Sub, LLC
Managing Member
Member
50%
50%
Wadsworth, LLC
Delaware
Regency Centers, L.P.
Member
100%
DJB No. 23, L.P.
Texas
Wadsworth, LLC
Regency Centers, L.P.
General Partner
Limited Partner
1%
99%
WFC-Purnell, L.P.
Delaware
Regency NC GP, LLC
Regency Centers, L.P.
General Partner
Limited Partner
1%
99%
Walton Town Center, LLC
Delaware
Regency Centers, L.P.
Member
100%
Waterside Marketplace, LLC
Delaware
Regency Centers, L.P.
Member
100%
Willow Festival Regency, LLC
Delaware
Regency Centers, L.P.
Member
100%
Willow Oaks Crossing, LLC
Delaware
Regency Centers, L.P.
Member
100%
 
 
 
 
 
Regency Realty Group, Inc.
Florida
Regency Centers, L.P.
Common Stock
100%
1488-2978 SC GP, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
1488-2978 SC, L.P.
Texas
1488-2978 SC GP, LLC
Regency Realty Group, Inc.
General Partner
Limited Partner
1%
99%
Bordeaux Development, LLC
Florida
Regency Realty Group, Inc.
Member
100%
The Center at Slatten Ranch, LLC
Delaware
Regency Realty Group, Inc.
Slatten Ranch Partners, L.P.
Member
Varies
Centerplace of Greeley III, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
Culpeper Regency, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
Dixon, LLC
Florida
Regency Realty Group, Inc.
Member
100%
East San Marco, LLC
Florida
Regency Realty Group, Inc.
The St. Joe Company
Managing Member
Member
50%
50%
Edmunson Orange Corp.
Tennessee
Regency Realty Group, Inc.
Common Stock
100%
VP101, LLC
Delaware
Edmunson Orange Corp.
Member
100%
Kulpsville Village Center LP, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
Kulpsville Village Center, LP
Delaware
Kulpsville Village Center LP, LLC
RRG Pennsylvania GP, LLC
General Partner
Limited Partner
.5%
99.5%
Lake Grove Commons Solar, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
Loveland Shopping Center, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
Lower Nazareth LP Holding, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
Lower Nazareth Partner, LP
Delaware
Regency Realty Group, Inc.
Lower Nazareth LP Holding, LLC
Limited Partner
General Partner
100%
0%
Lower Nazareth GP, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
Lower Nazareth Commons, LP
Delaware
Lower Nazareth GP, LLC
Lower Nazareth Partner, LP
General Partner
Limited Partner
.5%
99.5%
Lower Nazareth II LP Holding, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
Lower Nazareth II Partner, LP
Delaware
Lower Nazareth II LP Holding, LLC
Regency Realty Group, Inc.
General Partner
Limited Partner
0%
100%
Lower Nazareth II GP, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
Lower Nazareth Commons II, LP
Delaware
Lower Nazareth II GP, LLC
Lower Nazareth II Partner, LP
General Partner
Limited Partner
.5%
99.5%
Luther Properties, Inc.
Tennessee
Regency Realty Group, Inc.
Common Stock
100%
Marietta Outparcel, Inc.
Georgia
Regency Realty Group, Inc.
Common Stock
100%
Middle Creek Commons, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
NorthGate Regency, LLC
Delaware
Regency Realty Group, Inc.
Member
100%

9

REGENCY CENTERS CORPORATION
Subsidiaries

Entity
Jurisdiction
Owner(s)
Nature of Interest (1)
% of
Ownership
Paso Golden Hill, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
RB Airport Crossing, LLC
Delaware
Regency Realty Group, Inc.
Airport 6, LLC
Managing Member
Member
Interests Vary
RB Augusta, LLC
Delaware
Regency Realty Group, Inc.
P-6, LLC
Managing Member
Member
Interests Vary
RB Schererville Crossings, LLC
Delaware
Regency Realty Group, Inc.
WH41, LLC
Managing Member
Member
Interests Vary
RB Schererville 101, LLC
Indiana
RB Schererville Crossings, LLC
Member
100%
RB Schererville 102, LLC
Indiana
RB Schererville Crossings, LLC
Member
100%
RB Schererville 103, LLC
Indiana
RB Schererville Crossings, LLC
Member
100%
RB Schererville 104, LLC
Indiana
RB Schererville Crossings, LLC
Member
100%
RB Schererville 105, LLC
Indiana
RB Schererville Crossings, LLC
Member
100%
RB Schererville 106, LLC
Indiana
RB Schererville Crossings, LLC
Member
100%
RB Schererville 107, LLC
Indiana
RB Schererville Crossings, LLC
Member
100%
Schererville GRG, LLC
Indiana
RB Schererville Crossings, LLC
Member
100%
LQR1, LLC
Indiana
RB Schererville Crossings, LLC
Member
100%
RRG Baronhawks, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
RRG Mineral Holdings, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
RRG Net, LLC
Florida
Regency Realty Group, Inc.
Member
100%
Regency Realty Group-NE, Inc.
Florida
Regency Realty Group, Inc.
Common Stock
100%
Regency Solar, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
SS Harbour, L.P.
Texas
SS Harbour GP, LLC
Regency Realty Group, Inc.
General Partner
Limited Partner
1%
99%
Seminole Shoppes, LLC
Delaware
Regency Reatly Group, Inc.
M&P Shopping Centers
Managing Member
Member
50%
50%
Shops at Highland Village GP, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
Shops at Highland Village Development, Ltd.
Texas
Shops at Highland Village GP, LLC
Regency Realty Group, Inc.
General Partner
Limited Partner
1%
99%
Shops at Quail Creek, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
Silver Spring Square II, LP
Delaware
RRG Pennsylvania GP, LLC
TCH Realty Development Co., LLC
General Partner
Limited Partner
 
Slausen Central, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
State Street Crossing, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
Stonewall Regency, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
Summerville-Orangeburg, LLC
Delaware
Regency Realty Group, Inc.
Member
100%
RRG Pennsylvania GP, Inc.
Florida
Regency Realty Group, Inc.
Common Stock
100%
Swatara Marketplace LP
Delaware
RRG Pennsylvania GP, Inc.
Regency Realty Group, Inc.
General Partner
Limited Partner
.5%
99.5%
Tysons Seven, LLC
Delaware
Regency Realty Group, Inc.
JDC Tysons, LLC
Managing Member
Member
Varies
West End Properties, LLC
Florida
Regency Realty Group, Inc.
Member
100%
Springwoods Village Stuebner/Regency, LLC
Delaware
Regency Centers, L.P.
Spring RRC 1, LLC
Member
Member
53%
47%
Mellody Farm, LLC
Delaware
Regency Centers, L.P.
Member
100%
Fort Worth Leasing and Management, LLC
Texas
Regency Centers, L.P.
Member
100%
(1) Unless otherwise noted, the sole member of all single member limited liability companies is also the managing member or manager of the limited liability company.


10
Exhibit


Exhibit 23.1

Consent of Independent Registered Public Accounting Firm
The Board of Directors
Regency Centers Corporation:
We consent to the incorporation by reference in the registration statement (No. 333-52089, No. 333-44724, No. 333-114567, No. 333-125858, No. 333-125913, and No. 333-202971) on Form S-3 and (No. 333-194301) on Form S-3ASR and (No. 333-24971, No. 333-55062, No. 333-125857, No. 333-149872, and No. 333-174662) on Form S-8 of Regency Centers Corporation and (No. 333-194301-01) on Form S-3ASR of Regency Centers, L.P. of our reports dated February 18, 2016, with respect to the consolidated balance sheets of Regency Centers Corporation as of December 31, 2015 and 2014, and the related consolidated statements of operations, comprehensive income, equity, and cash flows for each of the years in the three-year period ended December 31, 2015, and the related financial statement schedule, and the effectiveness of internal control over financial reporting as of December 31, 2015, which reports appear in the December 31, 2015 combined annual report on Form 10-K of Regency Centers Corporation and Regency Centers, L.P.

/s/ KPMG LLP
February 18, 2016
Jacksonville, Florida
Certified Public Accountants



Exhibit


Exhibit 23.2

Consent of Independent Registered Public Accounting Firm
The Board of Directors of
Regency Centers Corporation,
the general partner of
Regency Centers, L.P.:
We consent to the incorporation by reference in the registration statement (No. 333-52089, No. 333-44724, No. 333-114567, No. 333-125858, No. 333-125913, and No. 333-202971) on Form S-3 and (No. 333-194301) on Form S-3ASR and (No. 333-24971, No. 333-55062, No. 333-125857, No. 333-149872, and No. 333-174662) on Form S-8 of Regency Centers Corporation and (No. 333-194301-01) on Form S-3ASR of Regency Centers, L.P. of our reports dated February 18, 2016, with respect to the consolidated balance sheets of Regency Centers, L.P. as of December 31, 2015 and 2014, and the related consolidated statements of operations, comprehensive income, capital, and cash flows for each of the years in the three-year period ended December 31, 2015, and the related financial statement schedule, and the effectiveness of internal control over financial reporting as of December 31, 2015, which reports appear in the December 31, 2015 combined annual report on Form 10-K of Regency Centers Corporation and Regency Centers, L.P.

/s/ KPMG LLP
February 18, 2016
Jacksonville, Florida
Certified Public Accountants



Exhibit


Exhibit 31.1
Certification of Chief Executive Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a)
or 15d-14(a) under the Securities Exchange Act of 1934
I, Martin E. Stein, Jr., certify that:
1.
I have reviewed this Annual Report on Form 10-K of Regency Centers Corporation (“registrant”);
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
Date: February 18, 2016
 
/s/ Martin E. Stein, Jr.
Martin E. Stein, Jr.
Chief Executive Officer


Exhibit


Exhibit 31.2
Certification of Chief Financial Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a)
or 15d-14(a) under the Securities Exchange Act of 1934
I, Lisa Palmer, certify that:
1.
I have reviewed this Annual Report on Form 10-K of Regency Centers Corporation (“registrant”);
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
Date: February 18, 2016
 
/s/ Lisa Palmer
Lisa Palmer
President and Chief Financial Officer



Exhibit


Exhibit 31.3
Certification of Chief Executive Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a)
or 15d-14(a) under the Securities Exchange Act of 1934
I, Martin E. Stein, Jr., certify that:
1.
I have reviewed this Annual Report on Form 10-K of Regency Centers, L.P. (“registrant”);
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
Date: February 18, 2016
 
/s/ Martin E. Stein, Jr.
Martin E. Stein, Jr.
Chief Executive Officer of Regency Centers Corporation, general partner of registrant



Exhibit


Exhibit 31.4
Certification of Chief Financial Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a)
or 15d-14(a) under the Securities Exchange Act of 1934
I, Lisa Palmer, certify that:
1.
I have reviewed this Annual Report on Form 10-K of Regency Centers, L.P. (“registrant”);
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
Date: February 18, 2016
 
/s/ Lisa Palmer
Lisa Palmer
President and Chief Financial Officer of Regency Centers Corporation, general partner of registrant



Exhibit


Exhibit 32.1
Written Statement of the Chief Executive Officer
Pursuant to 18 U.S.C. §1350
Solely for the purposes of complying with 18 U.S.C. §1350, I, the undersigned Chief Executive Officer of Regency Centers Corporation, hereby certify, based on my knowledge, that the Annual Report on Form 10-K of Regency Centers Corporation for the year ended December 31, 2015 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Regency Centers Corporation.
Date: February 18, 2016
 
/s/ Martin E. Stein, Jr.
Martin E. Stein, Jr.
Chief Executive Officer
 



Exhibit


Exhibit 32.2

Written Statement of the Chief Financial Officer
Pursuant to 18 U.S.C. §1350

Solely for the purposes of complying with 18 U.S.C. §1350, I, the undersigned Chief Financial Officer of Regency Centers Corporation, hereby certify, based on my knowledge, that the Annual Report on Form 10-K of Regency Centers Corporation for the year ended December 31, 2015 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Regency Centers Corporation.

Date: February 18, 2016                

/s/ Lisa Palmer
Lisa Palmer
President and Chief Financial Officer
 



Exhibit


Exhibit 32.3
Written Statement of the Chief Executive Officer
Pursuant to 18 U.S.C. §1350
Solely for the purposes of complying with 18 U.S.C. §1350, I, the undersigned Chief Executive Officer of Regency Centers, L.P., hereby certify, based on my knowledge, that the Annual Report on Form 10-K of Regency Centers, L.P. for the year ended December 31, 2015 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Regency Centers, L.P.
Date: February 18, 2016
 
/s/ Martin E. Stein, Jr.
Martin E. Stein, Jr.
Chief Executive Officer of Regency Centers Corporation, general partner of registrant




Exhibit


Exhibit 32.4
Written Statement of the Chief Financial Officer
Pursuant to 18 U.S.C. §1350
Solely for the purposes of complying with 18 U.S.C. §1350, I, the undersigned Chief Financial Officer of Regency Centers, L.P., hereby certify, based on my knowledge, that the Annual Report on Form 10-K of Regency Centers, L.P. for the year ended December 31, 2015 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Regency Centers, L.P.
Date: February 18, 2016
 
/s/ Lisa Palmer
Lisa Palmer
President and Chief Financial Officer of Regency Centers Corporation, general partner of registrant